After surging 35% in April, bitcoin is seeing its trading range narrow from thousands of dollars to just around $150.
“The narrowest trading range in about six months has Bitcoin technical analysts scouring price charts to help figure out whether the biggest cryptocurrency is poised to build upon its April rally,” according to Bloomberg.
Bitcoin prices rose slightly on Wednesday as the largest digital currency topped the $9,100 area. The cryptocurrency has a market capitalization of $155.32 billion.
Bitcoin’s rally above $9,000 comes just a couple of weeks after the cryptocurrency committed a death cross, where its 200-day moving average fell below its 50-day line. The death cross is normally bearish, but it needs to be validated, something bitcoin did not do.
Bitcoin Trading Range
“The market is not sending off strong signals as we speak as to the direction of the next major move,” Evercore ISI’s Rich Ross said. And though the bigger trend is higher, he said “Bitcoin is likely to remain violently sideways until a new trend emerges,” reports Bloomberg.
Recently, some big-name investors, including George Soros and the Rockefeller family, signaled their interest in blockchain technology and cryptocurrenices. That against a backdrop of potentially favorable seasonality. Recently, the Bitcoin Dominance Index has been rising, confirming the dominant perch of the cryptocurrency. After bitcoin, the largest cryptocurrencies are Ethereum, Ripple, Bitcoin Cash and Litecoin.
“Given the digital currency’s volatility, Ross said round numbers like $9,000 are of less significance from a technical standpoint. Instead, he is keeping an eye on the 50-day moving average of about $8,600 as key support and the 150-day at $9,700, which he said have defined the range over the past eight sessions,” according to Bloomberg.
There is significant room for growth in the cryptocurrency universe. Recent data suggest a small amount of American investors own any digital currencies and, after bitcoin, the numbers of crypto ownership dwindle.
For more information on the cryptocurrency market, visit our Bitcoin category.