Bitcoin Reclaims 50-Day EMA, Gains 1.4% in 24 Hours

Bitcoin has demonstrated signs of renewed strength after reclaiming a crucial technical level, which historically signals the beginning of short-term rallies. According to a recent analysis, Bitcoin has successfully moved back above its 50-day exponential moving average (EMA), a trend line commonly used to identify significant shifts in market momentum. Historically, when Bitcoin’s price dropped below the 50-day EMA during a correction and then swiftly rose above it again, the price often increased by 10% to 20%. This pattern appears to be repeating, as Bitcoin has now closed three consecutive days above the 50-day EMA after briefly falling below it, suggesting that bulls may be regaining control.
The analyst believes this could clear the path for a move toward $120,000 in the short term. However, geopolitical events involving the United States, Israel, and Iran could introduce unexpected volatility. At the time of writing, Bitcoin is trading at $106,720, up 1.4% in the past 24 hours. This represents a 7.8% recovery from its June 22 low of $98,974 when the market sold off in response to escalating Middle East tensions.
Some analysts believe that geopolitical unrest may enhance Bitcoin’s long-term appeal as a hedge. War and inflation risks often lead to increased government spending and easing of monetary policy, conditions that tend to favor Bitcoin. Despite the conflict, investor interest in Bitcoin has remained robust. For the eleventh consecutive day, spot Bitcoin exchange-traded funds have seen consistent inflows. Total net inflows in the past week have reached $938 million, indicating sustained interest from investors.
On the technical side, Bitcoin is approaching the upper band around $110,100 after breaking above the 50-day EMA. If Bitcoin is able to consolidate above the $105,700–$106,000 range, this setup would indicate growing bullish momentum. The relative strength index is just above neutral and suggests improving momentum without yet being overbought. Shorter-term moving averages also signal a “buy,” and the moving average convergence divergence has entered a bullish signal zone.
Bulls must push Bitcoin above the $108,000–$110,000 resistance level for upside momentum to continue. A daily close above $110,000 could open the door to the $114,000–$120,000 range. If momentum fades, support lies at $105,000 and stronger buying could return near $102,000 or $98,900.
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