Bitcoin, the largest cryptocurrency by market value has been on a tear in recent days, trading at $8,100 on Tuesday morning. With its recent rally, bitcoin is facing some new technical challenges that if conquered, could spell significant upside for the king of digital currencies.
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.
“Over the weekend, the cryptocurrency clocked a three-week high of $8,458 on Bitfinex, adding credence to the short-term bull reversal confirmed last Thursday. Further, the 30 percent rally from $6,425 (April 1 low) proved that the much-feared ‘death cross’ indicator was in fact a bear trap,” according to CoinDesk.
What’s Next For Bitcoin
If the cryptocurrency can earnestly conquer the $8,000 level and hold above there, $8,500 comes into play.
Bitcoin’s “descending trendline, representing a series of lower price highs over the last four months, is still intact. The trendline hurdle is seen around $8,500. The 50-day moving average (MA) is also lined up at 8,516,” reports CoinDesk. “A high volume break above the confluence of the trendline and the 50-day MA could be considered the final confirmation of the bearish-to-bullish trend change.”