Bitcoin [BTC] broke the incessant rangebound price action to spike close to $40,000. Prior to the remarkable recovery, the asset appeared to be in danger of further declines after it fell below $30,000 just a couple of days ago. The latest price action reversed the losses as it posted weekly gains of 20.81%.
The market got a boost after Elon Musk asserted that he wants the crypto-asset to succeed and that his space-exploration company SpaceX still holds BTC. Prominent investor Cathie Wood also did not hold back as she went on to say that corporations should consider adding the crypto-asset to their balance sheets. The B-Word conference has definitely charmed the bulls to cross a crucial level as the world’s largest crypto continued to inch towards the $40,000 level.
Bitcoin’s winning streak catalyzes bullish momentum
Bitcoin’s break out of a seven-month downtrend on the RSI was no less dramatic. Despite its unprecedented run to the ATH above $60K, BTC’s price movement with the RSI hasn’t been in tandem. As a matter of fact, as the crypto-asset formed higher highs, the Relative Strength Index formed lower lows, this creating bearish divergence.
However, the recent leg up was enough to spur an intense buying sentiment.
Bitcoin also broke the 50-day moving average [Pink] after a span of eleven weeks. A week before facing the death cross, the BTC price candles shifted below the 50 DMA. The trend has continued since then for over three months and attempts to breach the moving average had failed on multiple occasions. Since mid-May, things have turned worse for Bitcoin as it faced a series of obstacles, including escalating regulatory scrutiny in China, Europe, and several other parts of the world.
However, the daily framed chart of Bitcoin now shows significant optimism. After reclaiming the 50 DMA, the crypto was now nearing the 100-day moving average and its gauge with the BTC price has never been narrower in the past three months.