Bitcoin pushes to DMA50, but will it have the energy for a decisive breakthrough?
|- BTC/USD is recovering from $6,400 support.
- DMA200 needs to be taken out to reverse the trend.
Bitcoin took off from $6,400 handle to trade at $6,440 at the time of writing. The largest digital asset by market value has been rangebound for more than a week with no sights of an upcoming breakthrough as of yet.
From the technical point of view, BTC/USD has reached an important resistance level created by DMA50 (currently at $6,456). Once it is taken out, the recovery may gain traction with the ultimate bullish goal set at $6,800-$6,830 congestion zone that capped the upside since mid-September.
However, to break the long-term bearish trend the price needs to clear psychological $7,000 and by far the most important $7,200, strengthened by DMA200.
A move above this level will create a positive technical setup for further gains. According to Fundstrat's Tom Lee, Bitcoin trading generated positive returns in the following six months 80% of the time when Bitcoin trades above DMA200.
BTC/USD, the daily chart
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