BTC/USD Prints Higher Highs As $20,000 Looms
Bulls in control this week as Bitcoin makes its first attempt at final levels of resistance before $20,000.
At the time of writing, bears are defending the bottom of the orange resistance zone after Bitcoin surged past $12,000 this week. Traders will be closely watching to see if this prior resistance level can turn into support in the immediate term, or whether a false-break eventuates from today's retreat from recent highs.
A sustained break below $12,000 may signal to bears that further weakness may ensue, with short-term targets around the 50-day exponential moving average at ~$11,000.
Concurrently, we have bulls hitting the bid in anticipation of a concerted test of the top of the orange resistance zone. This level has been interpreted by many as the final resistance level before a sharp move to test all-time highs at ~$20,000.
Traders might also be watching the early stages of a downtrend on the14-day RSI. The break of the RSI downtrend that occurred in July (marked in pink) accurately pre-empted the move from ~$9,000 to current levels by approximately 20 days. Shorter-term traders might look to use this signal again over the coming days as the RSI retreats from its highs.
That's all for this week...
As always, please stay safe and awesome.
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