Crypto bulls try to encourage buyers
Bitcoin has added 1.4% in the last 24 hours, reaching the 16.7K level. It is a new attempt to test the 50-day moving average on a general lull and an effort by the bulls to paint a more optimistic technical picture with less strength while liquidity remains depressed.
This tactic is already successful, as the total capitalisation exceeds 800 billion (+1.6% in 24 hours).
The current dynamic looks like an attempt to draw a line under a bearish 2022. We also note that the December lows were higher than the November lows. But to argue for a reversal, it is more prudent to wait for a renewal of the local highs rather than relying only on the waning declines.
Closing the day above the 50-day average (around 16750) might give new momentum to the upside, and consolidation above 17K might be notable news in the quiet information flow and serve as a decoy for the bulls
At the same time, we recall that since July 2022, overcoming the 50-day average served as a trigger for selling on impressive volumes, and bitcoin soon renewed lows.
Author
Alexander Kuptsikevich, a senior market analyst at FxPro, has been with the company since its foundation. From time to time, he gives commentaries on radio and television. He publishes in major economic and socio-political media.
