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Bitcoin Remains in Consolidation Above Key Barrier

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Following an extremely turbulent past few days in the traditional financial markets, with an unexpected rate cut from the U.S. Federal Reserve (Fed) yesterday, bitcoin (BTC) is still trading above the key 200-day moving average line.

Source: iStock/Sasha_Suzi

As of press time on Wednesday (13:47 UTC), BTC is trading at USD 8,765, or 0.4% lower than at the same time yesterday, despite good news from India. However, the current price is somewhat higher compared to the lows seen yesterday, when bitcoin traded even closer to the USD 8,700 level, below the important 200-day moving average level.

The number one digital asset has seen its price decline by about 15% since its yearly high from mid-February. However, the support that was found at the important 200-day moving average level appears to have put optimism back into the minds of some investors, and so far prevented further selling of the asset.

The cautious optimism has persisted in the bitcoin market despite a bearish moving average crossover lurking on the horizon, as the medium-term 20 and 50-day moving average lines are set to cross each other sometime in the next couple of days.

The blue 20-day moving average and orange 50-day moving average lines are set to cross each other in the next couple of days. Source: www.tradingview.com

Although less significant than the classic “death cross,” which is usually defined as a 50 and 200-day moving average crossover, some short and mid-term traders may take notice of this impending bearish signal. This latest signal also comes after several major cryptoassets formed “golden crosses” in their charts back in mid-February.