BTC/USD Well Bid After China's Central Bank Prints $1.2 Trillion Yuan to Rescue Equity Market.
China's central bank injected $170b USD worth of yuan into equity markets amidst heightened fears of the potential economic impact of the Coronavirus.
BTC/USD remains well bid with the breakout of its 6-month downward trending channel still intact.
With price action finding resistance at the orange zone, medium-term bulls might wait for a pullback to the top of the blue support zone before accumulating.
Momentum bulls will likely buy on strength, waiting for a breakout of the top of the orange zone at $9,895 to coincide with a move above the 80 resistance on the daily RSI.
Bears might short here anticipating a failure of the orange resistance zone and a return to the blue support zone. Alternatively, conservative bears might take less risk and wait for a test of the top of the orange zone at $9895 before shorting again.
With the 50 day EMA now breaking away from the 200 day EMA, the strength of the 1 month BTC/USD uptrend appears to be intact. Traders will be on the lookout to see if this 'golden-cross' holds up, or whether the 50 day EMA crosses back below the 200 day EMA, signalling a weakening of the new uptrend.
Traders should also be on the lookout for money flowing from altcoins to BTC as we approach the BTC block reward halving in April/May.
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