Most BTC investors should have been pleased when looking at their portfolios this morning, as the number one cryptocurrency bulls were able to push the coin to over $40,000. One top analyst suggests that Bitcoin is now getting ready for a "mega-moon rally". Is the next phase of the bull run really beginning?
Bitcoin struggles to reach $40k
Bitcoin has had a fantastic closing day - again. For eight days in a row, the most important cryptocurrency was able to record green. After rising to over $40,000, Bitcoin did face some mild rejection just now. However, BTC is demonstrating some signs of strength and does not seem to want to give up the price range. Currently trading at $39,926, Bitcoin looks well positioned for further gains.
Blockchain research firm Santiment comments on the recent price jump in a recent tweet and explains how Bitcoin was able to recover to $40,000 virtually out of nowhere. According to it, three significant key factors went through the roof at the same time: on the one hand, the so-called "social volume" (i.e. the number of tweets talking about Bitcoin), the trading volume and the address activity. Santiment on this:
How did #Bitcoin recover to $40k out of the blue? 3 of our key leading metrics all skyrocketed! $BTC's social and trading volumes both hit a 5-week, and address activity hit a 3-week high. When this trio jumps in unison, good things typically happen.
Many analysts and traders are now looking at one particular factor to judge Bitcoin's further development: the 200-day simple moving average (SMA). Crypto trader Lark Davis, for example, comments in a new video that he is looking at this very metric to judge whether the markets are bullish or bearish.
"We're going to the moon"
According to Davis, all you need to do is keep an eye on this simple line, which he refers to as his "bull/bear line". The Youtube analyst also names the exact BTC zone that the bulls need to recapture for the markets to finally switch from bearish to bullish:
"IT'S CURRENTLY AT $44,700. THAT IS THE LINE THAT THE BULLS HAVE TO BRING UNDER THEIR CONTROL. AS LONG AS WE DON'T CROSS THAT LINE, TECHNICALLY WE ARE STILL IN A DOWNTREND."
In his estimation, all the bearish price action of the past few weeks may have just been preparation for a "mega-moon rally". "We're going to the moon," says Davis - once the SMA is recaptured.
And that's exactly what Bitcoin is now getting ready for. As popular analyst @rektcapital writes to his more than 176,000 followers, the No. 1 cryptocurrency by market cap just broke above the 200-day SMA for the first time since April 29, 2020. That's bullish for Bitcoin - and opens the doors for more big moves. Whether this will actually happen and Bitcoin can confirm its position, however, remains to be seen.