BTC/USD Well Supported as it Hugs Key Resistance Levels
As central banks continue to issue fiat currency with unprecedented urgency, there may have never been a better time for Bitcoin to shine.
Traders will note that, despite such a favourable setup, BTC/USD price remains in a tight consolidation under the top of its 2 month downward trending channel and supported by its 50-day exponential moving average (EMA).
As these two key levels converge in the coming days, BTC/USD price will be forced to break in one direction or the other. Given the tight weekly ranges, such a move could exhibit sustained short-term momentum.
Bulls are likely anticipating an eventual breakout of the 2 month downward trending channel and a quick move to retest the $9,500 - $10,500 orange resistance zone. Conversely, bears are likely anticipating an eventual break below the 50- day EMA and a meaningful test of the 200-day EMA and the bottom of the 2-month downward trending channel (shown in purple).
Given the converging short-term support and resistance levels, traders might be stacking stop losses slightly above key resistance at ~$9,500 and below key 50-day EMA support at ~$9,100.
Momentum traders may also note that the 14-day RSI has maintained its breakout, whilst also showing signs of bottoming at key bull market RSI support ~50. A strong bounce off this 50 level might give the market a confidence boost in relation to the resilience of Bitcoin's medium-term bullish trajectory.
Until next time, all the best and take care.
P.S. You can find me on twitter: @savdoescrypto
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