BTC/USD Well Bid As Global Markets Stage Recovery
Having rallied 83% off its March lows, BTC/USD remains well bid as it approaches key resistance.
As the world continues to digest the economic impact of the Coronavirus pandemic, BTC/USD remains the beneficiary of the aggressive bidding seen since its panic sell-off in March.
Having broken key resistance at $7,000, this level now represents key support for the bulls as we approach the bottom of the orange resistance zone, the 2-month downward trend-line resistance and the 50-day exponential moving average resistance.
Momentum bulls will be eager buyers on a sustained high-volume breakout of these three key resistance levels. Buyers on this breakout may take confidence from the 50 level on the 14-day RSI having been breached to the upside, often seen as adding weight to the strength of the current uptrend.
Bears may be eager shorters at current levels, with price sitting at three independent key resistance points. Bearish traders may perceive favourable risk/reward at this level, with stop losses likely to be scattered between the $7,500 - $8,000.
With the economic impact of the pandemic gradually revealing itself, traders should be on the lookout for heightened volatility arising from the daily Coronavirus news flow. Again, the key factor for BTC/USD will be whether it can continue to decouple from the rest of global markets and garner global recognition for its utility as a safe store of value.
Until next week, please stay safe and remain composed - the greatest opportunities arise when the masses are fearful.
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