BTC/USD Powers On Amidst USD Weakness
With USD under pressure this week, BTC/USD remains well bid above its key breakout of $10,500.
Trading ranges have been increasing, with BTC/USD putting in a $1,500 intra-day range only 2 days prior to writing. Traders will note that this volatile range spanned the space between the orange resistance zone and the blue support zone plotted last week. This could add weight to their significance as key levels going forward.
Bulls will take confidence from the BTC/USD price trading above its key breakout of $10,500. Moreover, given the near 3-month tight consolidation under this level, $10,500 is likely to have become vital support that must hold to maintain the market's current bullish sentiment. As a result, it may be reasonable to expect stop-loss congestion under this level.
Bears will note the large red candle that resulted from the $1,500 intra-day range 2 days ago. Given its 'engulfing' size relative to the previous candle, bearish traders might interpret this as a short-term top signal. Counter-trend traders might be shorting in the wake of this candle, anticipating a retest of the top of the blue support zone and/or the 50 level on the 14-day RSI.
With most of its key resistance levels now out of the way, the market may be digesting the prospects of BTC/USD re-testing its all-time highs of ~$20,000. One might expect a continued expansion of trading ranges as market participants recalibrate their biases and position themselves for the next big move.
That's it for this week. If you're interested to hear more of my thoughts, please find me on twitter - my handle is @savdoescrypto.
Until next time, please take care and trade responsibly.
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