Analyst: Bitcoin’s Price Must Break 200-Day Moving Average for Rally to Continue

Bitcoin’s price rally has stalled, coming off a major push upwards from the temporary dip that occurred late last week. Bitcoin’s current price, although relatively stable at $6,550, must break the 200-day moving average of approximately $7,200 in order to continue its upward trend, according to one analyst.

Nick Cawley, a markets analyst at Daily FX wrote about Bitcoin’s current price action and the need for it to break the moving average, saying:

“This price action—shown on the chart below—was quickly sold-off but did decisively break the downward triangle, and needs to be watched carefully. If BTC can close above this triangle over the next few sessions, it will indicate renewed bullish sentiment that could push the price back to the 200-day moving average and the spike high between $7,200 and $7,300.”

So far, bulls have failed to break the 200-day moving average on four separate occasions this year, in March, May, July, and early September. The price is currently moving towards that critical price barrier, which will prove to be an important test for bulls looking to reverse the persisting downtrend.

Bitcoin’s Price Caught in Trading Range, Altcoins Post Major Gains

Bitcoin’s price has been caught in an unprecedented trading range over the past month, ranging between $6,200 and $6,800, only briefly breaking through the range on its latest spike up to $6,900. Some analysts believe that the low volatility is a sign of a maturing market, while others think that the cryptocurrency is gearing up for a big move, in one direction or another.

During this period of unusual ranging, multiple altcoins have posted gains, recovering from their recently seen year-to-date lows.

XRP has been one of the best performers of the month, posting significant gains due to the recent release of Ripple’s XRP-based xRapid cross-border settlement product. One month ago, XRP was trading at $0.27. Since then, it rose to highs of $0.77 before settling and stabilizing at its current price of $0.47.

Ethereum, however, has not performed as well as many other major alts, closely replicating Bitcoin’s trading action. Over the past month, ETH has been caught in a trading range between approximately $200 and $250, currently trading at $208.

One notable performer over the past month has been ZRX, which is trading up nearly 30% in a 24-hour trading period. ZRX is sitting significantly off of its monthly lows of $0.50, reaching a high of over $1.00 before settling at its current price at $0.95.

Its performance can mainly be attributed to its recent listing on Coinbase, which led many speculative investors to purchase it pre-addition, and added trading volume to the token post-addition.

Featured image from Shutterstock.

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