BTC/USD Relentlessly Tests $10,000 with Higher Lows
As BTC/USD narrows in on $10,000, the days are numbered before price breaks out or makes a lower low... and the move that follows may be a big one.
The BTC/USD price is making successively higher lows as it continues to test the key psychological level of $10,000.
Bulls will note that recent lows have found support at the 50-day exponential moving average (EMA) and have also coincided with a bounce off key bull market RSI support at ~50.
Momentum traders will be keenly observing whether the 14-day RSI can maintain support at or around 50 without moving too far into oversold territory. A break below this bull market RSI support might signify the beginning of a more protracted downward price move. Conversely, a subsequent bounce off this key level may indicate sufficient bullish momentum for another concerted test of $10,000.
Bears may note a slight bearish divergence between price and the 14 day RSI, adding weight to the view that perhaps bullish momentum is waning. Bulls, on the other hand, are likely to be confident as long as price maintains support here at the 50 day EMA and the bottom of the orange resistance zone.
Traders should note signs of increasing correlation once more between BTC/USD and the "risk-on" trade. To the extent that this correlation persists, traders might expect increased volatility in the event of a second round of fear rattling global markets.
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