The price of bitcoin has that bullish feeling today.
Looking at the daily chart above, the price is up around $3200 on the day rising to an intraday high at $42591. The current price is around $42000.
Although sharply higher, there are important technical hurdles that loom ahead for the pair. Key of which is the falling 100 day MA at $43686.
Recall from earlier this month, the price moved up to test that MA and briefly traded above it (see blue line in the chart above), only to fail and move back down. The price has not closed above that MA since December 2, 2021.
Getting and staying above that 100 day MA level is key for a more bullish bias in the digital currency. However, it would represent step one for technical traders.
Other technical hurdles that would increase the bullish bias includes:
- Trading above the high from February at $45850
- Moving above the 38.2% of the move down from the November high. That level comes in at $46721.
- Getting above the 200 day MA at $48951. The price last traded above the 200 day MA back on December 30
The price of bitcoin reached an all time high at $69,000 on November 10, 2021. The decline to the February low cut more than 50% off the price with the price bottoming at $32950. Since then the price has traded between $45780 on the topside and $34324 on the downside (on February 24).
The catalyst for the move higher today came on the executive order from Pres. Biden that ordered the exploration of a digital currency operated by the US central bank (CBDB), and he encouraged regulators to identify and mitigate risks that digital assets pose to the financial system and broader economy. Priorities include promoting financial stability, responsible innovation and maintaining the countries financial edge. The actions - and more importantly, the non-confrontational wording - has seemed to open the door for a greater acceptance of digital currencies.
The fundamental story is in place. The bullish technical story is still developing. The price of bitcoin right now, is still mired in an up and down and non-trending range for close to 2 1/2 months. That is the bad news. The good news is non trend transitions to trending.
If the momentum can continue tomorrow and going forward, we may get that technical break that is needed. What we know is the technical targets are in place to lead and show the way.