Bitcoin (BTC) Price: Rally Supported But Quickly Running Out of Steam
Bitcoin (BTC) Price, News and Analysis:
- Bitcoin rally running into 50-dma resistance.
- Supportive trendline intact as BTC pull-back nears completion.
Bitcoin (BTC) continues to edge higherand erase nearly all of the mid-March sharp sell-off, with a series of higher lows producing a supportive uptrend that has been tested but not broken. The blow-out sell-off from $7,990 to $3,900 continues to be clawed back with the March 13 high the next target. The 50-day moving average is also in play and is being tested for the third day in a row, and as yet remains unbroken. The last time that BTC tried to break above 50-dma resistance (March 7), a sharp sell-off occurred a week later, hammering the price nearly 60% lower. The ATR indicator is also showing the market is overbought.
The current narrowing of Bitcoin’s trading range suggests that breakout is close. While the cryptocurrency market is 24/7, the upcoming Easter break will reduce market liquidity, leaving cryptocurrencies vulnerable to a sharp move, either way.
Bitcoin (BTC) Daily Price Chart (June 2019 - April 9, 2020)
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