Bitcoin (BTC) regained momentum, pushing its price above the psychological price of $40k. The leading cryptocurrency was trading at $40,200 during intraday trading, according to CoinMarketCap.
Market analyst Lark Davis noted that BTC needs to push to the $43,000 level to regain the 200-day moving average (MA) level. He explained:
“This is the line to beat for Bitcoin right now! We must retake the 200 day MA, which means we need a daily close above the blue line, around $43,000.”
BTC suffered from a sharp correction on May 19 as the price fell to around $30,000, resulting in the biggest single-day drop of the price up to 30%. Furthermore, this price drop indicated the first time that BTC had dropped below the 200-day moving average (MA).
The 200-day MA is a key technical indicator used to determine the general market trend. It is a line that shows the average closing price for the last 200 days or roughly 40 weeks of trading. Therefore, a surge above it represents the start of an uptrend.
On-chain analyst William Clemente III believes that if Bitcoin breaks the level above $41k, it will lead to an upward push to $47k based on on-chain volume.
Funding rates on perpetual BTC futures turn positive
“Funding rates on perpetual Bitcoin futures flipped positive after the latest price bump across $39k.”
This turn of events was triggered after Bitcoin hit a 3-week high of $40.8k as a healthy flow of funds were being moved from crypto exchanges.
Research firm Bloqport noted that more than 1% of all Bitcoin in circulation is wrapped on Ethereum.
It, therefore, remains to be observed whether BTC will reclaim and surge above the 200-day MA level.
Meanwhile, a leading American business intelligence firm, MicroStrategy, announced plans to sell $1 billion in stock to add more Bitcoins to its 92,079 BTC portfolio.
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