BTC/USD Exceeds $10,000 As Fed Chairman Powell Hints at Support for Private Digital Transactions.
BTC/USD is well bid after Chairman Powell's comment that "A ledger where you know everybody's payments is not something that would be particularly attractive in the context of the US."
Having broken the upper band of the previous resistance zone at $9,895, this now becomes a new zone of price support. The new resistance zone targets $11,989 - $12,317.
Medium-term bulls might accumulate on weakness as price retraces to the top of the new blue support zone.
Momentum bulls could be on high alert as the 14-day RSI momentarily broke key resistance at the 70 level. Continued RSI strength beyond the 70-80 level may indicate to momentum bulls that an aggressive move is imminent.
Bears will likely be stopping out of failed short positions as the support and resistance zones begin shifting in a bullish direction. New shorting pressure may increase as we approach the bottom of the new orange resistance zone at $11,989.
As the 50-day EMA pulls away from the 200-day EMA, trend followers might have increased confidence that a new bullish trend is underway.
BTC/USD price continues to move past key resistance points, and as the number of people in profit increases, selling overhang may gradually decrease as we approach all-time highs.
Bulls should be on the lookout for volume confirmations on subsequent breakouts, whilst shorter-term bears may find opportunities in shorting low-volume breakouts.
Traders should also be on the lookout for potential volatility spikes over the week as we receive more news about the Coronavirus epidemic in China.
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