- Jul 29, 2021
Bitcoin was one of the main talking points across financial markets today after suddenly climbing to its highest level since November 2018 above $5000.
While sudden and explosive swings are nothing new in the world of cryptocurrency, Bitcoin has certainly struggled for direction in recent months as investors evaluated the possibility of its adoption by the mainstream. Although the reason behind Bitcoin’s aggressive 23% jump remains a mystery, it does suggest that crypto could be back in town. In regards to the technical picture, BTCUSD turned bullish on the daily charts after prices rallied from $4200 to just above $5100.
With prices trading above the 200 Simple Moving Average and the MACD trading to the upside, lagging indicators suggest that Bitcoin has the potential to push higher. A solid daily close above $5000 will be needed to seal the deal for bulls. Alternatively, if $5000 proves to be a reliable resistance, Bitcoin has scope to retest $4500.
Under this incredible volatility, which had been maintained during the past year, although unfortunately on the downside, Bitcoin registers new four-month highs. From the accounting aspect, today’s movements are reflected in the two digits, where at the highest point of the session, BTC / USD presented a revaluation above 20%.
It is also worth mentioning that these movements have allowed the main crypto-active to flirt with the key psychological level of $5,000 per token. Since December, the minimum point where this recovery could be considered has started, Bitcoin presents an appreciation of more than 50%.
Having mentioned this, however, one must allude to prudence, since these movements turn out to be relative. If we compare the price of BTC from its historical highs, the token still shows losses of more than 70%. However, given the nature of this movement, and the levels it has broken in its path, this turns out to be a very promising activity for the future.