LONDON--(BUSINESS WIRE)--As trading volumes increase to sizeable levels and Bitcoin breaches our previously noted resistance level of $7740, according to our analysis the recent rally has put the currency back above an uptrend dating back to November 2017. Bitcoin has broken over its 50-day moving average for the first time since April, and broken north of the downtrend from the December high.
We think this is one of the most promising moves we have seen for the currency since the December top.
We're not out of the woods yet: in terms of Relative Strength Index (measuring the magnitude of recent price changes, we have moved to overbought levels, implying that a short-term ‘top’ is imminent during this rally.
Other cryptocurrencies are building to a possible breakout, given our analysis of Ethereum, Litecoin and Ripple XRP’s recent moves. In our view, should BTC's rally hold above $7700, bulls may make a new attempt on the all-important 200 day moving averages just above on each of these.
Whilst we remain in bear market territory formally, Bitcoin’s recent moves may signify the early stages of a transition from bear phase to sideways or bullish, albeit with battles ahead.
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