There seems to be no stopping the bitcoin (BTC) freight train.
The leading cryptocurrency by market value jumped to $6,964 at 06:00 UTC today on Bitstamp, the highest level since Sept. 5, 2018, having found acceptance above the crucial 200-week moving average at $6,500 in early Asian trading hours.
Prices have set a new multi-month high for the fourth straight day and have rallied in excess of over 70 percent in the last 5.5-weeks.
Notably, with the sharp rally, the 100-day MA of bitcoin’s price has moved above the 200-day MA. That is the first bullish crossover between the two averages since July 2015.
The development further confirms the long-term bearish-to-bullish trend change signaled by several technical indicators, including a golden crossover, over the last few weeks.
The moving average studies, however, are lagging indicators and have limited predictive abilities, as they take old price history into account.
Even so, investors may take heart as a similar crossover in July 2015 was followed by a 2.5-year bull run.
With the next mining reward halving due in May 2020, the doors seem open for BTC rise further over the long-term.
The short-term outlook is also bullish. The 30-day MA is trending north with the price creating bullish higher highs and higher lows. BTC, therefore, looks set to extend the rally to the next resistance level at $7,400.
A pullback, however, may precede the next leg higher or the gains above $7,000 may not be sustainable in the short-term, as the 14-day relative strength index (RSI) is reporting extreme overbought conditions.
Also, it’s worth noting that BTC suffered a temporary price pullback from $290 to $220 in the four weeks following the bull cross in July 2015 before picking a strong bid.
That said, with the long-term technicals biased bullish, the historically strong support of the 30-day MA, currently at $5,463, could again reverse deeper price pullbacks, if any.