Traders Prepare for Imminent Big Move on BTC/USD
BTC/USD remains well bid as traders position themselves for either a breakout or rejection of $10,000.
Having failed $10,000 twice in the past 9 months, BTC/USD is making a third concerted attempt at a break above this key psychological level.
Traders will note that moves above $10,000 have been fleeting and aggressively sold into. Bears are likely to perceive this as lacklustre stop-loss fishing before an eventual rejection of this level. Conversely, bulls will note that each successive attempt is coming off higher lows. They may also note that trading ranges are narrowing under the resistance level in preparation for an eventual and explosive breakout.
Momentum traders will note that the 14-day RSI bounced off bull market support at ~50 for a third consecutive time, whilst also making a higher low off the 50-day exponential moving average support. Momentum traders may also note the bottom of the orange resistance zone acting as a short-term support level and possibly gaining popularity as an attractive risk-reward stop loss level for new long positions.
Traders should take note that ranges are tightening as we converge on $10,000, with recent breakout attempts being heavily sold into. This kind of price action may be recognizable as the kind which usually precedes large moves in one direction or the other. As we get a clear resolution on direction, sentiment swings are likely to be aggressive as traders digest a reposition.
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