BTC/USD 14 Day RSI Predicting Explosive Bull Market
Bitcoin bulls have a reason to be optimistic, with the 14 day RSI showing similar signs to the 2019 rally from $3,100 to $13,900.
After the recent breakout of the 80 level on the 14 day RSI, bulls will be looking for continued RSI support at the 50 level to confirm the momentum of the current trend. Momentum traders will likely treat RSI pullbacks to this key bull market support level as dip-buying opportunities. Further RSI strength beyond the 80 level will confirm a similar level of bullish momentum that saw the Bitcoin price more than quadruple from off its lows to recent highs just shy of $14,000.
Bears may be continuing to short to $10,000 psychological resistance, as well as local high resistance at $10,500. The favourable risk/reward of this trade may be resulting in a crowded stop loss area slightly above $10,500. A move through this level could trigger a cascade of stop-losses and cause sharp spikes to the upside. Both bulls and bears will be closely watching the $10,500 local high resistance, a sustained break of which may confirm a 'higher high' and the commencement of a new bullish trend.
Traders should be on the lookout for heightened volatility as some of these key levels begin to be tested over the coming week. Finally, a continuation of the recent decoupling of BTC/USD from the typical "risk-on" trade is likely to be received positively by macro observers and add to its appeal as a non-correlated source of alpha.
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