Bitcoin price suddenly jumps above $7, 000 and regains 50-day moving average (MA) again for the first time in three months.
The sudden bitcoin price increase has been attributed to the recent news making round the media that BlackRock company, the world’s largest asset manager and exchange traded fund is making plans to enter into cryptocurrency trade market.
This is coming after bitcoin’s price rally from the two-week low of $6,070 drop on early last week Wednesday, to recent increase of $7,000. This has established a higher low (bullish pattern) on the daily chart.
The CEO of BlackRock, Larry Fink later clarified rumors by stating that BlackRock doesn’t see a high demand for cryptocurrencies from clients. His clarification seemed not to affect the price of bitcoin as price continued to move between $6750 to $6780.
However, while a move above the 50-day MA is encouraging, it does not qualify as a bullish reversal. Only a convincing break above the inverse head-and-shoulders neckline of $6,838 would confirm a short-term bearish-to-bullish trend change.
At the time of this report, bitcoin has been trading at $7,3307at Coinbase, the leading cryptocurrency trading platform and trading at $7,320 on Bitfinex – up 6 percent in the last 24 hours – and the 50-day MA is located at $6,750.
Research shows the relative strength index (RSI) has moved above 50.00 (in bullish territory) and the short-term moving averages (5-day, 10-day) are showing signs in favor of the bulls.
With this, the cryptocurrency seems to be be gaining momentum to test $8,000.
The RSI is stationed well above 70.00, showing the rally from $6,070 is over. So, prices could test the 10-candle MA support of $6,570.