BTC/USD Resilient in the Face of Broader Risk-Off Sentiment
BTC/USD price remains in the green amidst 'super contagion' in oil futures and heavy selling in global equities.
Bulls may have gained confidence this week as BTC/USD maintained its key breakout of upper trendline resistance, despite heavy risk-off sentiment in legacy markets.
At the time of writing, BTC/USD is green on the day with the S&P500 trading down 3% and gold off almost 1%. This asymmetry, if sustained, may fuel bullish sentiment leading into what might be a highly publicised block reward halving in a little less than a month.
The 200-day exponential moving average (EMA) remains a key level of resistance in the short term, having recently crossed into the orange resistance zone. Momentum bulls might be awaiting a break-out of the 200-day EMA and the $8,000 upper band of the orange resistance zone, anticipating an aggressive move to $10,000.
As the shorter-term trading range of BTC/USD tightens, attention may turn to the14-day RSI as a potential leading indicator. A breakout above the 60 level may reassure bulls of continued upside momentum. Conversely, any divergence with price and/or a break below the 40 level might indicate a weakening of the current trend and the formation of a short-term top.
Bears are likely aggressive shorters here with favourable risk/reward setups involving stop losses scattered between $7,500 and $8,000. As mentioned last week, a strong move into this zone may cause a cascade of short stop-loss triggering.
With the oil markets in chaos and a second wave of risk-off sentiment hitting equity markets, traders can expect ongoing volatility for the foreseeable future. Continued asymmetry in BTC/USD price action may attract positive attention as investors scramble to allocate capital amidst a chaotic backdrop of negative oil prices and weakening legacy markets.
BTSE regularly hosts the technical analysis of experienced BTSE traders. Please note that we neither endorse any analyses published nor give you financial advice. Please make any trading decisions based on your own research.
Our aim is to create a platform that offers you the most enjoyable trading experience. If you have questions or suggestions, please don’t hesitate to reach out to us at firstname.lastname@example.org or DM us on Twitter: @BTSEcom.