BTC/USD Keeps Tight Range as Bears Defend $10k.
BTC/USD has been well bid this week after rumours that Paypal and Venmo may make crypto trading available to their $300m+ users.
Despite the bullish news, bears might be confident in light of the consistent lack of price momentum beyond $10,000 resistance. With the 14-day RSI failing to break its divergent downtrend, momentum traders may be eager shorters if it continues its weakness below key bull market RSI support at ~50 (indicated by the blue arrows).
Bulls will be closely watching the 50-day exponential moving average (EMA), in particular, whether it can continue to support price in light of the falling momentum. The 200-day EMA and the blue support zone are the next support levels from which bulls may be eager dip buyers if we get a break below the 50-day EMA.
In terms of stop-loss distribution, $8,000 remains a key support level for the bulls and $10,500 representing key resistance for the bears. Any significant price moves beyond these two levels may result in a cascade of stop-loss triggering.
Traders should be vigilant as we approach the end of this tight consolidation and the beginning of a sustained move in either direction. Such times require disciplined money management and an equanimous approach to news flow.
Until next time, all the best and take care.
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