BTC/USD Breaks 6 Month Long Downtrend, Will It Hold?
As the holiday season concludes, Wall Street traders are returning to their desks to see BTC/USD breaking its 6-month downtrend and 200-day EMA.
Bulls may interpret this as a second leg continuation of a broader uptrend, with the first leg having rallied from $3,000 to almost $14,000.
Shorter-term bulls might exercise caution here, anticipating selling pressure as we approach RSI resistance and the lower band of the orange resistance zone.
Momentum bulls will be closely watching for a break of the key 80 level, which has historically preceded large and aggressive upside moves.
Medium-term bears may wait for the price to venture into the orange resistance zone before shorting, while shorter-term bears might open shorts here in anticipation of a low-volume false break and a return to within the bands of the 6-month down trending channel.
With Wall Street now back from holidays, traders might anticipate volatility as the futures markets digest this key breakout on BTC/USD.
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