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.
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