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It was on December 17, when Bitcoin’s (BTC) price experienced an alarming dip. As a result, the price for Bitcoin went below the $47,259 figure, which is the 200-day SMA for the largest cryptocurrency. However, the price of Bitcoin soon recovered from the low point and grew over the 200-day SMA.
As the price of BTC surged above the 200-day SMA, it demonstrated the true power of bulls in controlling its price. The performance of Bitcoin shows that the bulls have retained their price over the 200-day SMA. They have increased their buying power creating a surge in the price of Bitcoin.
It was due to the intensified buying power of the bulls that did not let the bears continue with their selling spree. They outnumbered the bears and boosted the price of Bitcoin higher than the 200-day SMA.
As a result of the high buying power of the bulls, the selling power of the bears was dismissed at the lower levels. This helped in surging the unit price of Bitcoin.
However, it did take a few days for bulls to take control of the situation and push Bitcoin’s price over the 20-day SMA. The data from CoinMarketCap shows that its price went above the 200-day SMA on December 21, 2021.
On December 21, Bitcoin’s price went over $48k per BTC and even managed to grow all the way up to $49,536.4 per BTC on December 22, 2021. While Bitcoin tried to stay over the 20-day EMA of $49,517, it faced huge resistance and could not manage to retain that price.
The strong resistance around the 20-day EMA meant that the bears were selling Bitcoin just when it would hit a new rally. As a result, the price of Bitcoin went down and as of now, its price is hovering between $48,000 and $48,500 per BTC.
The analysis for Bitcoin from TradingView shows that the bears may try to pull its price lower than the current figure. If the bears manage to do it, the price of Bitcoin will fall below the 200-day SMA. Once the bears achieve that, they may intensify the selling for BTC to bring its price down to $39,600, the strong support zone for Bitcoin.
On the other hand, the bulls may make an attempt to push the price of Bitcoin in the higher zone. For now, the challenge for bulls is to push Bitcoin’s price over the 20-day EMA. If they succeed in doing that, the bulls may push its price over the $52,000 per BTC mark.
At $55,000, the bulls may face a lot of resistance from the bears. If the bulls manage to win against the bears, they may be able to push its price over $60,000 per BTC.