Bitcoin prices have reached recent highs of over $5,250, representing a significant bitcoin breakout. The news follows stellar trading on the day, as well as a return to bullish market sentiment in general.
The world’s leading cryptocurrency was trading at $5,279 at the time of press, up $477 on the day. This represents one of the most significant moves in bitcoin prices for several years.
According to market analysts, the price performance has surpassed moving averages on three separate measures. The development therefore reflects a return to positivity within the sector.
In 2017, bitcoin prices reached highs of nearly $20,000. Since then prices have plummeted, before recovering to trade sideways at a much lower level.
The breakthrough beyond $5,000 shows the market returning to strength, spurred on by increasing adoption of bitcoin as a payment method. Not to mention ongoing demand from speculators and end users alike. According to technical analysis, the breakthrough could continue to gain momentum over the coming days.
Writing in CoinDesk, analyst Sam Ouimet explained how the market has passed three critical ‘moving average’ indicators.
“A moving average (MA), when used in financial analysis, is simply a continuously calculated average of a certain economic factor like price or trading volume over a specified period of time. The moving average is particularly useful for smoothing out short-term fluctuations in the data set to identify the direction of the longer term trend.”
As a baseline to highlight under and over performing markets, moving averages across 50, 100 and 200 days are the most significant. These indicators are vital for determining the direction of market momentum.
According to Ouimet, bitcoin prices are already surpassing each of those three key moving averages. In the process, indicating strong bullish tendencies in bitcoin markets.
“Perhaps most significant is the 200 day MA, which is…..the dividing line between a strong market and weak one. Notably, bitcoin’s price is now trading above these three key moving averages in first since January 13, 2018.”
The news will come as welcome relief for those long on bitcoin, after a number of challenging months of trading performance. Several positive signs now point towards ongoing bullish sentiment. The good times for bitcoin bulls therefore looks poised for a return.