Bitcoin (BTC) Price Rally: Supportive Higher Lows and 200-DMA Break
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Bitcoin (BTC) Price, News and Analysis:
- Bitcoin spiked $1,200 on Wednesday as the 200-dma fell.
- Overbought but supported by a series of higher lows.
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After a period of limited price action, Bitcoin surged over $1,200 higher on Wednesday asthe last of a series of positive technical moves came into play. The chart shows that BTC made a conclusive break higher off the 50-dma on April 22 and the 20-dma on April 23 with support also offered by a basic uptrend drawn from the March 13 low. While uptrend lines gain more strength from repeated touches and moves higher, supportive swing-lows add positive sentiment to this set-up. Furthermore, the break and subsequent close above the April 7 high at $7,455 added to the move.
Wednesday’s sharp break above the 200-dma adds further credibility to the move although yesterday’s indecision candle suggests the move may be taking a break, while the CCI indicator sits firmly in overbought territory. For the move to continue, the series of higher lows needs to continue, leaving $8,415 a level to watch. Below here, the 200-dma at $7,992 and the 61.8% Fibonacci retracement level at $7,985.
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Bitcoin (BTC) Daily Price Chart (2019 – May 1, 2020)
Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.
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