Bitcoin has climbed above an important technical level for the first time in nearly two months, a move that suggests bullish momentum may be strengthening.
The cryptocurrency rose more than 3% over the past 24 hours to trade around $73,700, pushing above its 50-day moving average, which stood near $71,125 at the time of writing. The advance comes after several days of resilient price action despite escalating tensions related to the Iran conflict and volatility across global equity markets, particularly in Asia.
The 50-day moving average is widely followed by traders as a key momentum gauge and often acts as a significant resistance level during market recoveries.
“A decisive move above this indicator can signal a shift in the medium-term trend and could represent an important turning point in the coming days,” said Alex Kuptsikevich, senior market analyst at FxPro.
However, breaking above the average does not necessarily guarantee a sustained rally. A similar breakout in early January resulted in about an 8% rise in bitcoin’s price, but the momentum lasted only around two weeks before sellers regained control. Other past instances have also delivered mixed outcomes.
For now, the move suggests bitcoin may continue to push higher, although volatility could increase as the price approaches the $75,000 level.
That zone is significant because market makers — firms that provide liquidity on exchanges — are believed to hold large net short gamma positions there. As prices move closer to $75,000, they may need to buy bitcoin to rebalance their exposure.
Such hedging activity can amplify price swings, potentially increasing volatility as the market tests the next major resistance area.
