• Bitcoin’s price is currently at $22,800 and has recorded a 10% profit in the past week.
• An analyst at Jarvis Labs suggests that Bitcoin’s current rally is the result of a long period of consolidation below its 200-Day Moving Average.
• If Bitcoin can hold above the 200-day MA at $19,520, it could push the cryptocurrency into further highs, solidifying a flip of the 200-day MA from resistance to support.
The cryptocurrency market is experiencing a resurgence following months of collapsing companies and bankruptcies. Bitcoin, the leading cryptocurrency by market capitalization, is leading the charge with a record-breaking rally that is smashing resistance levels and reclaiming previously lost territory.
As of this writing, Bitcoin (BTC) trades at $22,800 with sideways movement in the last 24 hours. In the previous week, the cryptocurrency records a 10% profit. Other cryptocurrencies in the top 10 by market capitalization are experiencing similar price action with substantial profits over this period.
An analysis by Jarvis Labs suggests that this current rally is the result of a long period of consolidation below the 200-Day Moving Average (MA). This moving average is one of BTC’s most important levels operating as critical support during the bearish cycles. As Bitcoin reclaims the 200-day MA at around $19,520, the analyst wants to see a consolidation above this level. If the cryptocurrency can hold above it, it could push BTC into further highs, solidifying „a flip of the 200-day MA from resistance to support.“
Looking at the chart, during the 2019 bear market, BTC saw a long consolidation below its 200-day MA before reclaiming these levels later in the year. According to the analyst, the longer the consolidation, the better the improvement for BTC’s overall market structure.
At this point, the industry will be closely watching the price action of Bitcoin as it continues to break resistance levels. If the cryptocurrency can hold above the 200-day MA, it could be the beginning of a new dawn for the industry, with Bitcoin leading the way to new heights.