A key technical indicator suggests the price of Bitcoin could be poised for a 193% surge.
According to the market strategy and research firm Fundstrat, BTC’s recent rally above its 200-day moving average will remain one of the most crucial metrics to watch moving forward.
As reported by MarketWatch, Fundstrat analyzed Bitcoin’s average returns over a six-month period whenever the cryptocurrency traded above or below its 200-day moving average.
“Based on BTC’s trading history, a move above the 200D for BTC is meaningful statistically. When BTC is above its 200D, its win-ratio is 80% compared to a mere 36% when it is below its 200D. And 6M forward returns average 193% compared to a measly 10% when below its 200 [day moving average] – hence, being above the 200D is a big deal.”
When Fundstrat released its report on Tuesday, Bitcoin’s 200-day was set at $4,620, which means a 193% rally would lift the price to about $13,500, a number not seen since January 15, 2018.
Right now, the crypto market is mostly in the red. Looking at the top three cryptocurrencies by market cap, Bitcoin is down 2.21% at $4,927; Ethereum is down 0.23% at $163.64; and XRP is up 5.16% at $0.3677.
Overall, technical analysts are offering mixed outlooks on the short-term prospects of Bitcoin, Ethereum, XRP and Litecoin.
Coinspeaker – BTC pullback unlikely to start now
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NewsBTC – Is this the correction?
CryptoGlobe – XRP/USD medium-term trend looks bullish
FXStreet – Second resistance level is at $0.39
CryptoPotato – Following 40% weekly gains, could LTC overcome $100?
FXStreet – Will the 61.8% Fib level hold?