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Time for Bitcoin to Decide at the 50 SMA

Posted Monday, March 1, 2021 by
Skerdian Meta • 1 min read

Decisive time for Bitcoin

Bitcoin surged higher, close to $ 60,000 last week, after being bullish for nearly a year. But the price retreated back down, and last week was totally bearish for cryptocurrencies, except for Cardano (ADA) which keeps making new highs.

BITCOIN fell below $ 45,000 yesterday, but it is trying to reverse higher today, facing the 50 SMA (yellow) on the H4 chart. This cryptocurrency is facing a “tipping point” at the moment, with the potential to explode higher or retreat further down, if the 50 SMA holds as resistance.

The recent embrace by Tesla and MasterCard could point to Bitcoin beginning a massive transformation of going mainstream, and that could gather even more involvement from institutional investors as it has been doing as of late. Citi said the following earlier:

“If businesses and individuals gain access via digital wallets to planned central bank digital cash and so-called stablecoins, the popular digital currency’s global reach, traceability and potential for quick payments could see its use for commerce widen dramatically.”

But the City also argues that there are challenges standing in the way of Bitcoin (not least of all the regulatory environment, surely).

“There are a host of risks and obstacles that stand in the way of Bitcoin progress. Weighing these potential hurdles against the opportunities leads to the conclusion that Bitcoin is at a tipping point.”

They added that Bitcoin could become a preferred currency for international trade or that it could be staring down the barrel of a “speculative implosion”. So, the 50 SMA will decide that now, and if it breaks, Bitcoin will move above $ 50,000 again. If the buyers fail, we will see how far down the price will retreat in the next bearish leg.

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