Bitcoin has recently crossed above the 50-day simple moving average (SMA), a commonly observed indicator of a short-term bullish trend. This breakout is validated by technical indicators, including a fresh bullish crossover on the daily MACD histogram and a bullish cross between the 5- and 10-day SMAs, signaling increasing upside momentum.
The recent rally in the BTC price is likely driven by market expectations of an expected rate cut by the Federal Reserve this Wednesday and a positive development in the ongoing trade tensions between the US and China.
Despite these encouraging signs, caution is warranted as the CoinDesk Bitcoin Trend Indicator (BTI), which measures the presence, direction and strength of momentum, continues to signal a downward trend. Further, BTC prices remain below the Ichimoku cloud on the daily chart, an important resistance level. A decisive move above this cloud would confirm the bullish revival and potentially set the stage for a rally towards $120,000 and above.
