The latest break over major resistance for Bitcoin has flipped the trend bias from range to positive.
After several months of low realized volatility sideways price movement, it looks like Bitcoin’s momentum has finally begun to build up.
A critical barrier since mid-2022, crucial convergent resistance on the 89-day moving average was surpassed by BTC/USD at the same time as another ceiling at the mid-December high of 18370.
The 200-day moving average has been enabled by the break above the combined ceiling, which also signals that the short-term trend has changed from bearish to bullish.
The bullish break this month, which is significant, increases the likelihood of a larger base forming in cryptocurrencies.
Interestingly, this month’s increase has resulted in a 100% retracement of the November 2022 decline in the BTC/USD pair.
Whenever a market If able to retrace 100% of the previous leg down, it is frequently a sign of capitulation and implies that bears have had enough for the time being.
