A cryptocurrency bull market may be upon us following Bitcoin’s successful block reward halving on Monday.
Bitcoin is now more than 21% up in the past four days, as it sets its sights on the psychological level of resistance at $10,000.
The rally approached a critical point on Thursday morning as the world’s largest cryptocurrency surged to break out above the $9,400 level before continuing to the upside with a test of $9,970.
It has since suffered a minor sell-off with price falling back to around $9,700 although it remains in a bullish posture in light of the recent exponential moving average golden cross.
As analysts and speculators focused on the impact of Monday’s halving, what went by unnoticed was the golden cross as the 50 EMA rose above the 200 EMA on the daily chart.
A golden cross is a bullish indicator across all markets while it has also led to a number of 30% plus rallies in the history of Bitcoin.
This is a clear sign of a transition into a bull market, which ties into the narrative of a reduction in supply in light of the halving.
The halving results in rewards for miners being slashed from 12.5BTC per block to 6.25BTC per block, an event that has historically been very kind to Bitcoin in terms of price action.
The previous halving in 2016 preceded an astonishing bull market that saw Bitcoin surge to its all-time high of $20,000 in late 2017.
A key hurdle Bitcoin needs to surpass in the short term is forming a series of lower highs, which mean it needs to close daily or weekly candles above $10,500 and $13,800 before it can begin to rally back towards $20,000.
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