BTC/USD Poised at Key Resistance as Optimism Returns to Global Markets
The stars are aligning for the bulls with ~30 days until Bitcoin's 'halving' and a further 6 trillion USD flying out of the Federal Reserve's printing press.
This week promises to be an important one for Bitcoin, with the BTC/USD price converging between its upper trendline resistance and the top of the blue support zone. With both levels having had a strong effect on recent price action, traders will be closely watching for a high volume breakout in one of the two directions.
Bulls may be aggressive buyers on a break of the upper trendline resistance, taking confidence from a bullish 14-day RSI trend and a strong bounce off the top of the blue support zone. With the $7,000 - $8,000 range likely to be scattered with a large quantity of short-side stop losses, moves into this zone may be met with a flurry of market bidding.
Bears are likely to be aggressive shorters at current levels, taking confidence from recent rallies having failed to break the upper trend line resistance twice this month.
Momentum traders will be closely watching the 38-40 level on the 14-day RSI, a break of which would signal a weakening of the momentum in Bitcoin's bounce off recent panic lows.
Traders should be on high alert for increased volatility this month as we approach Bitcoin's block reward halving, including any opportunities that might arise from further panic-driven price action.
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