Bitcoin Rally Has It on Cusp of Breaching Technical Limit: Chart
The cryptocurrency drew closer to the upper limit of its trading envelope -- a breach of which can often lead to a pullback.
(Bloomberg) -- Bitcoin briefly rallied above $50,000 on Monday for the first time since May as investor sentiment improves after a recent crackdown by the Chinese government. In the process, the cryptocurrency drew closer to the upper limit of its trading envelope -- a technical measure built around moving price averages -- a breach of which can often lead to a pullback. Daniela Hathorn, an analyst at DailyFx.com, thinks that it may be a while before we see any further bullish momentum because $50,000 is a key psychological level for the currency. “A pullback towards the $48,000 area would be the first sign of trouble,” she wrote in a note Monday. “But the positive trend isn’t in any trouble as long as Bitcoin stays above its 200-day moving average at $45,750.”
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