Digital currencies need some fresh bullish drivers at this stage to continue to ascent in the coming days
Following several failed attempts, the bitcoin price managed to stage a bounce from the 100-DMA and finished in the green territory on Thursday for the first time since the beginning of the week. The BTCUSD pair briefly surged to the $44,000 figure but retreated partially by the end of the day. On Friday, the world’s largest cryptocurrency retains a bullish bias to climb to the $45,000 handle, flirting with the 20- and 200-DMAs.
As a result of the recent bounce in BTC price, the daily RSI has reversed higher and continues to point north in the neutral territory, thus showing a break from the current pattern. This in turn implies that the bullish momentum has reemerged.
It looks like the cryptocurrency market has already digested the latest hit by China’s authorities – the central bank said all financial transactions involving cryptocurrencies are illegal. However, digital currencies need some fresh bullish drivers at this stage to continue to ascent in the coming days.
In the immediate term, the BTCUSD pair needs to hold above the 20-DMA, (today at $44,500) in order to make a decisive break above the $45,000 barrier eventually. Otherwise, another bearish correction could lie ahead. On the downside, the mentioned 100-DMA that now arrives at $41,300 continues to act as the key support zone. As long as the prices stay above this moving average, bearish risks are limited.
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.