BTC/USD Remains Well Bid Post Halving Despite Global Risk-Off Sentiment
After a volatile pre-halving range, BTC/USD is seeing heavy post-halving bidding at trendline support.
The world is likely one step closer to appreciating the asymmetric nature of Bitcoin's returns today, with the S&P500 down over 2.4% and BTC/USD more than 3% in the green.
Bulls may be eager buyers on weakness after two strong bounces off the bottom of the blue support zone and the 200 day exponential moving average (EMA).
Medium to longer-term bulls will note the 50 day EMA crossing the 200 day EMA, sometimes indicative of the commencement of a new medium-term bullish trend. The 14 day RSI adds weight to this view, having bounced at previous bull market RSI support.
Momentum bulls will be on high alert after the 14 day RSI finally crossed the all-important 80 level in the pre-halving rally to $10,000. Historically, the 80 level has been breached prior to and during explosive upside moves. Further RSI strength beyond the 80 zone will be attractive to momentum bulls, most likely anticipating a sharp move to test all-time highs.
Bears will be closely watching for a break below the 50 level on the RSI, which will put the strength of the current bullish trend in question.
Shorters may be waiting for another test of $10,000 to load new entries with stops likely stacked slightly above this key psychological level.
Momentum bears may be waiting for a break below the blue support zone, 200 day EMA and the current trendline support before chasing the market lower.
With a new wave of risk-off sentiment hitting global markets, traders should take note of any continued asymmetry in BTC/USD price action and the degree of attention this garners from the broader financial media.
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