Shorters Under Pressure as BTC/USD Reclaims Major Support Levels
As global risk-on sentiment pushes the NASDAQ into all-time highs, BTC/USD remains well supported above major support levels.
After last week's break below the 50-day exponential moving average (EMA) and key bull-market RSI support, bulls will be comforted to see both price and RSI trading above these key levels once again.
Momentum bulls will be looking for a strong rebound in the RSI, ideally to back above 80 as seen in early May. A sustained break back below 50 RSI and the 50 day EMA might attract eager shorters anticipating a continued fall in momentum.
Swing traders might be closely watching the 1-month downward trending channel (in pink), noting that the 14-day RSI is showing early signs of a breakout from this key short-term channel.
Bears are likely to be under pressure, particularly new shorts opened after recent breakouts below the key support levels that have since been reclaimed. In this regard, bears will be closely watching for price to break back below the 50-day EMA and for the 14-day RSI to make a sustained move back below key bull market support at ~50.
Traders may also note the strong buy support that came in at the top of the blue support zone at ~$9,000 and should be aware of the likelihood of stop-loss congestion below this level.
Until next time, all the best and take care.
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