Bitcoin Eyes Test of Key Price Hurdle in First Since November

Published on by Coindesk | Published on

Bitcoin could test a key resistance line for the first time in nearly two months.

The widely followed 50-day simple moving average line is currently located at $3,940 - $100 above bitcoin's current price of $3,840 - according to Bitstamp data.

The crucial SMA line was last put to test on Nov. 8.

As a result, the gap between the 50-day SMA line and price widened sharply in the following two weeks.

Notably, on Nov. 25, the 50-day MA line was located at least $2500 above price.

BTC could test and possibly break above the 50-day SMA line of $3,940 in the next day or two.

As seen above, BTC ran into offers near the 50-day SMA earlier today.

The 50-day exponential moving average is also located just below the neckline hurdle.

View BTC could rise above the 50-day SMA of $3,940 and extend the rally to $3,170 in the short-term.

A UTC close above $4,170 would confirm an inverse head-and-shoulders bullish reversal and open up upside toward the psychological hurdle of $5,000.

x