BTSE Token Well Bid After Bouncing at Key RSI Support
BTSE Token continues its upward momentum, with 14-day RSI finding support again in the important 45-50 bull market support zone.
This week we saw BTSE Token's 4th bounce off the 45-50 zone on the 14-day RSI (marked with green arrows). This key level often indicates points of price support during times of upward trending price action.
Swing traders will be watching for future tests of this 45-50 zone on the RSI as an indicator of the strength of the current trend. A sustained break below this level could be a popular signal to pre-empt weakening momentum and a possible short-term top in BTSE Token's current bullish trajectory.
Bulls will note the recent bounce off the 50-day exponential moving average and the bottom of the blue support zone. Risk/rewards, at the time, favoured long positions with stop losses under $1.80, hence traders might expect continuing stop-loss accumulation under this level.
Bears are probably coming back to short at current levels, after two prior failures to break above the orange resistance zone. Current risk/rewards may favour short positions with stop-losses slightly above the top of the orange resistance zone. Similarly, traders might expect stop-loss accumulation slightly above this level at ~$2.30.
Traders should also be cognizant of the growing percentage of BTSE Token holders in profit, and importantly, what this means in terms of expected future selling overhang.
That's it for this week. If you're interested to hear more of my thoughts, please find me on twitter - my handle is @savdoescrypto.
Until next week, take care and stay awesome.
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