Bitcoin (BTC) – Expected to gather additional buying interestPosted on Sunday, February 6 2022 at 9:13 pm GMT+0000
Bitcoin (BTC) posted stunning gains on Friday following a furious surge above the three-month-old descending trendline and the capping 20-day exponential moving average, raising hopes for more progress.
From the technical point of view, the 20-day exponential moving average shifted north and the 50-day moving average slowed its bearish pace suggesting that the positive price action will further intensify in the forthcoming sessions.
Additionally, the momentum indicators witness improvement in buying sentiment as the MACD is distancing itself above its signal line, and the RSI climbed to the bullish region.
So, the base scenario is for the crypto-king to continue its recovery, and the spotlight is currently on the 50-day exponential moving average seen around 42,600. A decisive daily close above that line will further bolster buying appetite, sending the price straight up towards the 44,500 – 45,700 section, a break of which will likely see a more aggressive extension towards 52,000.
However, if the 50-day exponential moving average manages to temporarily pause the rally, the price will likely seek immediate support around the February 1st inside swing high at 39,300 and the broken trendline seen around 36,000.
In brief, Bitcoin is expected to gather additional buying interest in the coming sessions and a clear move above the 50-day exponential moving average will add more fuel to the current rally.