Bitcoin and other cryptocurrencies are struggling to recover this week after they crashed last week. Elon Musk removed Bitcoin from Tesla and started this decline, then China’s pressure on cryptos turned the sentiment largely negative as most of the Bitcoin mining is done in China.
The 20 and 50 SMAs have been broken in Bitcoin now
Bitcoin (BTC) lost more than half of its value when testing $ 30,000, while Litecoin lost about 70% of value, dropping from $ 420 to $ 120. However, in the second round of the sale, we saw a bullish sign where Bitcoin remained above previous lows.
However, this week the situation seems to be changing. Bitcoin reversed after forming a hammer candle formation with a bullish turn. The moving averages still provide resistance as the price rises, but eventually they break one after the other.
Bitcoin rose above the 20 SMA (gray) yesterday, today it is testing the 50 SMA (yellow) and $ 40,000 level. The picture on Litecoin is similar, while the 20 SMA broke yesterday, today it rose above the 50 SMA (yellow) that provided solid resistance during the intersection.
Therefore, cryptocurrencies are trying to sustain the larger uptrend. The upward momentum is not very strong, but at least the downtrend has stopped and buyers are drawing a picture taking control again.