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A four-day rally has brought Bitcoin (BTC) bulls closer to the 50-day (EMA) exponential moving average ($35,115) as resistance.
Bitcoin Bulls Are Looking For A Break Above The 50-day EMA As Resistance
During the May 2021 sell-off, the wave that was important in boosting Bitcoin’s bullish bias during 2020 as support switched to become resistance.
As a result, it prevented the cryptocurrency from repeatedly extending its upward rebound moves.
For example, Bitcoin’s mid-May plunge from $56,900 to $30,000 led bulls to purchase the dip. As a consequence, the cryptocurrency surged back above $40,000, only to see its bullish momentum dwindling at the 50-day EMA.
Following May’s retracement effort, the process repeated itself several times.
A well-known cryptocurrency analyst, Rekt Capital, used a 2020 fractal to forecast probable outcomes from the current Bitcoin price movement.
The trader saw that Bitcoin price challenged the 50-day EMA as resistance in October of last year when the BTC/USD pair was trading just below $10,000. BTC/USD finally reached a record high near $65,000 after breaking the wave to the upside.
“This [was] when BTC created a virtually similar fractal of Bitcoin’s current price movement,” the profile stated, implying that the fractal may recur if Bitcoin approaches the same resistance level after nine months.
This Time Of Year
After a bright week, Bitcoin closed in to recover the 50-day EMA.
The leading cryptocurrency was up more than 8% at the end of the seven days.
The majority of its gains occurred following The B-Word conference, which included a trio of Wall Street heavyweights, including Tesla CEO Elon Musk, Twitter CEO Jack Dorsey, and Ark Invest founder Cathie Wood.
The businessmen took turns praising Bitcoin technology and discussing their plans.
Musk, whose cryptocurrency remarks are known for causing market volatility, disclosed that his private rocket business SpaceX owns Bitcoin.
He also stated that Tesla’s Bitcoin payment option will be restored after its miners switched to more sustainable energy sources to power its network.
The Fed, The Dollar, And The Stock Market
Cryptocurrencies have benefited from risk-on movements, which have been led by a turbulent US dollar index and a rising Wall Street.
The Federal Reserve’s next week seems to be jam-packed with high-profile statistics and policy statements. Bitcoin bulls expect the FOMC meeting to provide a mixed bag of results.
On Wednesday, the Federal Open Market Committee (FOMC) will announce its interest rate decision and monetary policy statement. A hostile shift in the Fed’s policies in June contributed to Bitcoin prices falling and the currency rising.
Officials from the United States’ central bank intend to debate whether tapering may begin by the end of this year.
On the other hand, if the Fed decides to put the tapering conversation on hold, given the increasing economic concerns caused by the fast-spreading Delta version of the Covid-19, it may hurt the dollar’s appeal and, as a result, provide a little lift to Bitcoin.
Thinking about thinking?
Instead of thinking about tapering the Fed, running $120B in monthly QE, has actually expanded its balance sheet by $162B during just the first 3 weeks in July.
Record high balance sheet = record high S&P 500.
Every month since November. Like clockwork. pic.twitter.com/UIhzWCnid5— Sven Henrich (@NorthmanTrader) July 24, 2021
The Bureau of Economic Analysis will announce its second-quarter growth estimate for the second quarter on Thursday. Economists predict that it will rise to 7.9% year on year, up from 6.4% in the first three months of the year.