The mood in the crypto market is better than it has been in a long time. All major currencies have been up for three weeks. The key currency Bitcoin has now overcome an important hurdle. This is a strong sign of medium-term development.
Bitcoin (BTC) continues its rally over the course of the week and has now recaptured the GD200 at $ 45,118. This is a strong sign that the cops are firmly in control. The price for a BTC has increased by around 57 percent since July 21.
However, the sharp rise now increases the risk of a setback. The rate corrected by twelve percent at the turn of the month, but since then it has risen by a further 24 percent. This makes it more and more likely that profits will be taken again. Investors should pay particular attention to the psychologically important $ 47,000 mark, which is where technical resistance resides. This again increases the risk of profit-taking.
BTC daily chart in USD
The overall situation remains promising, however, and the trend would be intact even after a double-digit correction. Initial support is at $ 42,400. A little lower, at $ 40,550, is the GD20 as an additional support.
Cryptocurrencies have been in rally mode for three weeks and there is no end in sight. In the short term, however, profit-taking can also occur with Bitcoin. However, the trend is strong and the price has now climbed again above the GD200 at $ 45,118. An important sign of positive medium-term development, the long-term perspective remains promising anyway.
Note on conflict of interests:
The chairman of the board and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that benefit from any price development resulting from the publication: Bitcoin.
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