Bitcoin Breaks Above Key Indicators, But Caution Remains
The Bitcoin price has been on the rise for weeks, but is it too early to say that the bear market has ended? According to some indicators, the answer might be yes. The 50-day moving average has broken above the 200-day moving average on the daily chart, a sign often seen as a precursor to a new bull run.
However, there are still reasons to be cautious. The macroeconomic environment is still uncertain, with inflation and interest rates being key factors that could impact Bitcoin's price. Kevin Warsh, speaking at Jackson Hole, made it clear that the US Federal Reserve is committed to fighting inflation, which has led to a 60% probability of a 25-basis-point rate hike next week.
The technical picture also suggests caution. While the daily chart looks bullish, with an 'inverse head and shoulders' formation above the 200-day moving average, the weekly chart shows a more mixed picture. The 50-week moving average is still below the 200-week moving average, indicating that the bear market may not be over yet.