Even though Bitcoin has traded in the upside in the last few days, after reacting to Tesla’s bug buy, the digital asset has spent most of the day in the $45,850 daily low zone. Despite that, the coin shows progress as it is attempting a move to the upside region again. One factor that would boost this move away from the downside is that Bitcoin is still trading way above its moving averages.
The coin has also seen such a remarkable price move in the market, moving from the initial $33,000 that it started the year with to trade at a high of a little bit above $49,000. Presently, the asset is trading at $48,524, which is still a win for trades that have held it since the beginning of the year.
Bitcoin is trading above its moving averages
Despite the digital asset making a push to clear out and break above the $50,000 resistance, it is still in the overbought region. This has been the deciding factor as it has been pushing the coin in the ways of the bears who have taken over briefly. If the coin decides to trade in the upside zone, then the traders would rest because the 9-day moving average would serve as the most critical support level of the asset.
But the market would still need the line of the 9-day moving average to stay steady above that of the 21-day average if it wants to stay trade clear in the upward region. Should the bears join the party, Bitcoin would hope that the bears would be able to defend its price at the $45,500 price region. If the bears fail to hold it steady and the traders fail to back it, the digital asset could touch the $42,000 supper level before testing the $40,000 level. If there is not fight back, the leading digital asset might still go under as the bears would drag it close to its last support level of $38,000.
Traders need to trigger the bulls
If the bulls take over the market, traders would need to push the market close to the $56,000 price region, and with more activities, the bulls could trigger the $58,000 price region. If all goes well, then the asset can go all the way to claim the $60,000 price region. With the line already moving close to the overbought zone, it looks like the bulls will be preparing to enter the market and drive it to the top.
Looking at its 4-hour chart, Bitcoin is still trading at the $49,000 region after moving above its moving average. Also, both the bears and bulls are presently in the market, and any turn would trigger one of them and determine the direction the market moves in. Also, trades can push the market as it hopes to gather more momentum way above the $56,000 price region. If this resistance is broken, then the bulls will have a joy ride on their way to push the asset towards touching the $58,000 price region.