The price of bitcoin has passed its 200-day moving average, hovering around 37,000 euros, and has reached its highest level in almost three months. This was highlighted by Alejandro Zala, Country Manager of Bitpanda in Spain, who shared with Cointelegraph en Español an analysis in which he also referred to Ethereum and some altcoins.
The price performance of BTC
“Bitcoin has exceeded its 200-day moving average, located around 37,000 euros, and has reached its highest level in almost three months. The move could indicate a continuation of this bullish momentum, as retail investors often view the moving average lines as strong support areas. The price has risen by around 60% since July 20, when the support level of 24,000 euros held firm, “said Zala.
“On the daily chart we can see that the price made a death crossover (in the yellow box) on June 18, when its 50-day SMA fell below its 200-day SMA. The death cross is a technical chart pattern that indicates the possibility of a major sell. The cross appears on a chart when the short-term moving average crosses below its long-term moving average. Normally, the moving averages most used in this pattern are the moving averages of 50 and 200 days ”, detailed the Bitpanda executive.
“Following the crossover, the price started to move positively with BTC heading above its modified five-week moving average, now hovering above its 200-week simple moving average. The bulls (more optimistic investors) of BTC are back in control and the bears (bears) seem to have left the market in recent weeks, ”he added.
According to Zala, last week, the event of the London hard fork of Ethereum had great relevance, which was successfully integrated and showed immediate effects. The network included the EIP-1559 upgrade proposal, designed to simplify the way transaction fees are paid using a burn mechanism, removing some ETH from circulation.
“This new fee mechanism appears to be bullish for the price of ETH, as the reduction in supply will help reduce the inflation rate and could turn it into a deflationary asset if the burn rate is high enough,” he said.
“The reduction of new currencies, as well as a burning mechanism that reduces the supply, could be a catalyst for the price of Ethereum, which could translate into higher returns than those of Bitcoin in the long term,” he added later.
According to Zala, Ethereum is gradually decoupling from Bitcoin showing more profitability. “The correlation between the two biggest coins is falling and Ethereum is outperforming its big brother. Ethereum closed the week with its strongest candle of the last 12 weeks, which is highly positive on a higher time frame chart. The price almost doubled since July 21 and reached 2,780 euros, its maximum for almost 3 months, “he remarked.
Altcoins keep up
Additionally, Zala referred to other cryptocurrencies. He stated that the market is moving positively and has seen its biggest weekly gain in more than four weeks.
“The Fear and Greed Index went from extreme fear with only 10 index points to a greed zone of 70 points in the last two weeks. The level surpassed the maximum figure in May, before the big market crash. The change in market sentiment, compared to a few weeks ago, raised the price of the main altcoins, “he said.
As Zala commented, “The ADA price nearly doubled from the June and July lows and has been in the spotlight in recent weeks as Cardano’s huge fanbase is eagerly awaiting the release of the update. Alonzo, which will allow the realization of smart contracts ”.
“BEST also performed well last week and its price accelerated after the burn event that took place the week before. The price has moved higher since July 20 and has reached its highest levels in a month. The RSI indicator shows that it is breaking out of its oversold levels, indicating that the bullish momentum could continue, ”he added.
“IOTA also showed strength, as its price surpassed its highest value since June 20 and gained 80% from its July low. The price is approaching the 1 euro mark, the highest level seen in almost 3 months. The MACD is moving into the positive zone and has crossed the signal line quickly, indicating that the bullish momentum in price is strengthening, ”he said afterward.