Bitcoin Bounces Off the 50 SMA, Resuming the Bullish Trend

Bitcoin has climbed more than $ 9,000 higher int he last two days

Skerdian Meta•Friday, January 29, 2021•1 min read

Cryptocurrencies turned bullish last year and surged in Q4 of 2020, as they acquired the status of safe havens. Bitcoin was leading the pack, surging pretty close to $ 42,000 in the last week of this month. But, the surge ended and in the second week most of the crypto market retreated lower, apart from ETHEREUM which continued to make new highs.

Bitcoin retreated lower and fell close to $ 30,000 in the second week of January, but the 20 SMA (gray) held as support for more than a week. Although, that moving average was broken in the fourth week of this month and Bitcoin fell below $ 29,000.

But the 50 SMA (yellow) turned into support on the daily chart and BITCOIN bounced to $ 34,800. This week sellers returned again and they retested the 50 SMA for a second time, failing once again, as the 50 SMA provided solid support below $ 30,000.

Yesterday the price bounced off the 50 SMA and today we are seeing a continuation of the bullish momentum, although the price has come off the highs ad around $ 38.600. So, buyers are back in charge now which means that the bullish trend is back on.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.