BTC/USD Pulls Back, is it Time to Buy The Dip?
Bitcoin's price extends its pullback this week following another failure of the orange resistance zone.
Traders will note that the 14-day RSI has pulled back into the 45 to 50 bull market support range, a level that has held up well for the bulls during the current rally.
Swing traders looking to "buy the dip" might have regard to the 50-day exponential moving average (EMA) that has guided price support in recent months. They may also be on the lookout for a strong bounce in the 14-day RSI and a break-out of its current downtrend marked in pink.
Bears will point to the clear divergence forming between the upward trending BTC/USD price and the downward sloping14-day RSI as a sign that the current upward move has lost steam. Bearish traders might be shorters on strength, looking for recent momentum to cool off and price to settle into a more protracted downtrend.
Conversely, bulls are likely to be buyers of weaknesses. With the 50-day EMA and the barely tested blue support zone underpinning current momentum, bullish traders are likely anticipating many more tests of the final resistance levels between where we are today and Bitcoin's all-time highs at ~$20,000.
That's it for me this week. If you enjoyed my analysis, feel free to check out my twitter at @savdoescrypto.
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