• @Savdoescrypto

BTC/USD Well Bid Leading into 'Halving'



BTC/USD continues to rise through heavy resistance, now only two weeks out from its much-anticipated block reward halving.


Having moved through its upper trend-line resistance and 50-day exponential moving average (EMA), BTC/USD is currently testing heavy resistance at its 200-day EMA and the top of the orange resistance zone.


In line with last week's comments, a cascade of short side stop-losses were triggered after BTC/USD breached the bottom of the orange resistance zone at $7,500. A similar dynamic may unfold should current bullish momentum continue through the top of the zone at $8,000.


Bulls may take confidence in the lack of divergence in the 14 day RSI, adding weight to the continued strength of the short-term uptrend. Momentum bulls may also be watching for sustained RSI strength into the 80 zone, a key level that has historically preceded explosive moves to the upside.


Bears are likely to remain aggressive shorters at current levels, anticipating a failure of the 200-day EMA and the top of the orange resistance zone. The short side risk/reward dynamic currently favours tight stop-losses placed slightly above the top of the orange zone at $8,000. Sustained strength beyond this level may be met by another cascade of short side stop-loss selling.


Traders should be vigilant as we approach Bitcoin's block reward halving in less than two weeks. Market sentiment as to its effect on price, if any, remains diversely spread. Therefore, whether it turns out to be bullish or bearish, the effect of the 'halving' is unlikely to be priced in.

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