The digital currency has been holding above the 200-DMA for two weeks already
Bitcoin prices surged above the $50,000 psychological level on Thursday before retreating marginally. Earlier today, the largest cryptocurrency by market capitalization slipped to the $48,300 area but managed to regain upside momentum to settle just below the mentioned barrier in recent trading.
Of note, the digital currency has been holding above the 200-DMA for two weeks already, which is a positive technical signal in the short term. On the other hand, the BTCUSD pair still lacks upside momentum to make a decisive break above the $50,000 threshold which represents the key barrier at this stage.
Other cryptocurrencies are rising as well. In part, the broader rally is driven by the fact that El Salvador plans to start using bitcoin as the national currency next week. Such reports usually help drive investor enthusiasm. Also, digital currencies are driven higher by the recognition that global central banks have no intention of slowing down their asset purchases programs.
If the $50,000 figure gives up on a daily/weekly closing basis, the $50,500 intermediate resistance will come into the market focus next, followed by the $53,000 level. However, the coin could see a retreat before staging another rally from more attractive levels. On the downside, the immediate support is represented by the 20-DMA which arrives just below the $48,000 figure. As long as the prices stay above this moving average, upside risks persist.
The longer-term outlook for the cryptocurrency market remains upbeat as global acceptance continues while attracting large investors capable of pushing the prices much higher from the current levels. In the medium term, the digital coin could regain the $55,000 figure to register fresh record highs, probably towards the end of this year.
