It looks like the upside momentum will be measured in the short term, as market players need to take a breath following the recent volatile trading
Last month, bitcoin price volatility reached a ten-months high as the digital currency number one surged to fresh all-time highs above the $58,000 handle. Since the beginning of March, the BTCUSD is trending mostly higher but the bullish momentum has slowed as the prices struggle to get back to the mentioned tops following a downside correction seen during the last week of February.
Bitcoin finished around the $50,000 figure on Wednesday while oscillating around the 20-DMA this week. However, the price is yet to confirm a recovery above this level on a daily closing basis today, as the coin struggles to see more gains on Thursday while trading with a slight bearish bias on the intraday charts.
The fact that BTCUSD managed to bounce from lows around $43,00 seen on Sunday could be a sign of investor readiness to push the prices to fresh record highs in the coming weeks, or even days. However, it looks like the upside momentum will be measured in the short term, as market players need to take a breath following the recent volatile trading.
Earlier this week, bitcoin fell after Gary Gensler, the nominee for chairman of the U.S. Securities and Exchange Commission, said that insuring that cryptocurrency markets are free of fraud and manipulation is a challenge for the agency.
The coin has recovered since then but near-term downside risks continue to persist as long as the price stays below the $52,500 intermediate resistance that capped bullish attempts on Wednesday. On the weekly charts, the technical picture is getting better these days following last week’s plunge, while on the monthly timeframes, the digital currency has been rising for the sixth month in a row.
In a wider picture, the longer-term outlook for the largest cryptocurrency by market capitalization remains positive, as more institutional investors will continue to jump into bitcoin, driving its price higher.