Bitcoin Breaks the 100 SMA for the First Time Since November

BITCOIN has been trading on a bearish trend for more than a year along with all major cryptocurrencies. It has broken all support levels on the way down, but it has formed new ones at $3,100 and at $3,300. The sellers had a go at the $3,300 level at the end of January, but they weren’t able to push below it and the price got stuck down there for two weeks.

Then we saw a jump more than a week ago worth around $400 as positive comments regarding cryptocurrencies hit the market, but the buyers couldn’t break the 100 SMA (red) on the H4 chart. This moving average has provided resistance before at the end of December and the beginning of January around the $4,000 area. But, it has slipped lower as the tops have declined in Bitcoin since then.

Today, the buyers have received some new stimulus to push the price higher and Bitcoin finally pushed above the 100 SMA for the first time since November last year. From what I can see, there are a couple of reasons for this jump, both coming from Ether/Ethereum, which is also leading this rally. One of the reasons is the Constantinople hard fork that Ethereum will introduce on March 1, while the other reason is that ErisX is filing a letter with the US Commodity Futures Trading Commission (CFTC) on listing Ethereum futures in exchanges.

Bitcoin is trading at $3,700 according to my broker ETX Capital, which is a resistance level. If this level gets broken, the area around the $4,000 level will be the net target. Although, this is still a minor move compared to what we’re used to seeing in cryptos, so don’t expect fireworks in any direction.