Initiating Technical Analysis Coverage of BTSE Token
BTSE Token has more than doubled in price since April of this year, following the launch of the BTSE Debit Card, XAUt futures and Bitcoin Dominance Futures.
Can this strength continue? Or is it due for a pull-back?
Bulls are likely to be buyers on weakness to the blue support zone and the 50-day exponential moving average. Stop-loss congestion could be present below this level at ~$1.80 and traders should be cognizant of the possibility of increased volatility should this level breach to the downside.
Swing traders will note that the 45-50 bull market support range on14-day RSI has signalled three bounce points during the bullish trend that ensued since May of this year (marked with green arrows). With current RSI at 49.75, traders will be closely observing whether this key level can hold for the fourth time in a row and signify a possible continuation of the recent bullish momentum.
Bears will note that the most recent high failed to exceed the previous high of $2.31. This price action might be seen as early signs of a 'double-top' formation that would be confirmed on a break below the blue support zone at ~$1.80.
Bearish traders are likely to be short from the recent failure of the orange resistance zone, with likely stop-loss congestion beyond the top of this zone at ~$2.31. A breach of this level might see a cascade of bearish stop-loss triggering.
Traders should note that current support and resistance zones are positioned slightly above and below BTSE Token's initial offering price of $2. This may represent a key psychological level for market participants and a point of accumulation and distribution. A meaningful break-out above or below either of these key zones could be a key determinant of market psychology going forward.
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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