Bitcoin surpassed USD 51,000 over the weekend, a level that it had not crossed since last May, and continued with the advances throughout the first hours of operation this Monday. The flagship digital currency appears to have weathered the blow from China’s regulatory advance on mining activity and its movements in the market show technical signals that investors are following indicating the possibility of even bigger rallies.
The largest cryptocurrency rose to US $ 51,362 this Sunday, after briefly touching US $ 51,000 last Friday, a level that had not reached since May 12. That day, BTC fell 12.4% in just one day and started a market crash that led it to breach the USD 30,000 barrier in mid-July.
However, both Bitcoin and most cryptocurrencies (Ether, Cardano, Polkadot and Binance Coin, among others) have risen very strongly in price again in recent weeks.
At 8 a.m. in Argentina, Bitcoin had advanced even further and was trading at $ 51,727 according to data from Coinmarketcap. Ether, the second most widely used cryptocurrency, was at $ 3,928, Cardano at $ 2.89, and Binance Coin at $ 503.16.
The “hash crash”, a collapse in the computing power of the Bitcoin network as a result of the Chinese government’s crackdown on the cryptocurrency mining industry, appears to have been overcome and prices may return to advance.
The hash rate, a measure of the computing power used in mining and processing, has risen as high as 55% since early July, when it hit a nearly two-year low. Token prices also recovered more than half of their losses since their April high.
Chinese cryptocurrency miners who were forced to unplug their energy-intensive machines in the wake of the government crackdown in the middle of the year may have already started the process of turning them back on abroad, the market understands.
And beyond those fundamentals, investors are now excited by new technical signals that allow speculating on bigger rises in the future. The charts point to a “golden crossover,” a long-term bullish indicator that practitioners of “technical analysis” pay attention to, an approach aimed at directing investment strategies based on past movements in financial assets.
Sunday’s rise, for example, meant a break to the upside “of the Fibonacci retracement” of 61.8% of the bearish period that lasted from April to June. The breakout could bring additional demand because traders who specialize in technical analysis often use Fibonacci ratios such as 61.8%, 38.2% and 23.6% to identify support, resistance and trading opportunities.
Bitcoin consolidated above the 200-day moving average over the past two weeks, building a foundation for Sunday’s move above $ 50,000. While the 200-day moving average hovers near $ 46,100 this morning, the 50-day moving average rises much more threadbare and creates the possibility of it crossing above the 200-day moving average in the coming days. This crossing of lines is known as a “golden cross” or “golden cross” and is considered an indicator of higher rises in the future.