The price of Bitcoin had recently surged up to $5,500 enabling it to trade at its five-month high with its key resistance playing through at $6,000. Further gains are believed to be in sight as suggested by the bullish indicator.
Research Analyst Lukman Otunuga had this to say about the cryptocurrency:
The technical picture for [bitcoin] is looking increasingly bullish on the daily charts with the fabled bullish ‘golden cross’ slowly coming into play.
In the crypto market, terms like 50-day moving average and 200-day moving average are typically used. A golden cross is a rare event where the short-term momentum surpasses the longer term trend. It occurs when the 50-day moving average crosses a little bit above the 200-day moving average.
On the mid-morning of 23 April 2019, the 50-day moving average at $4,489 while the 200-day moving average was at $4,478 as stated in the bullish indicator reading.
In the most recent trade, it was recorded that a single Bitcoin could fetch up to $5,576.99. It was reported that the cryptocurrency has gained more than 70 percent since mid-December when Bitcoin experienced a cycle low.
Due to the increase in the value of Bitcoin, a growing sentiment for the cryptocurrency have become imminent.
DailyFX recently compiled data that illustrates how retail traders are becoming more bullish. The data states that about 80.9 percent of retail traders net-long Bitcoin.
However, there are also people who believe that there is more to the Bitcoin turnaround than the golden cross theory.
Morgan Creek Digital Partner and Founder Anthony Pompliano said that the price of Bitcoin had gone up to about 50 percent since 2019 had begun. Pompliano says that it is much more critical to put the focus on the fundamentals of the transaction settlement network instead of the volatile price movements. He believes that the improvement in the hash rate indicates that transactions in the blockchain network have increased. It is also a good measure of the performance of Bitcoin miners.
Pompliano added that people have the discipline and patience to stay in the crypto market long enough will surely be rewarded handsomely.
However, some people were not able to reap the rewards of the Bitcoin resurgence.
Masayoshi Son, founder of Softbank reportedly lost $130 million when he engaged his Bitcoin on a personal bet. Thus, when the price of Bitcoin hit a new benchmark, he was unable to enjoy the victory.