Tuesday, 21 March 2023

Crypto News

Bitcoin price faces key moving average showdown 3 weeks after breakout

Bitcoin price faces key moving average showdown 3 weeks after breakout

Bitcoin (BTC) saw no relief at the Feb. 10 Wall Street open as United States equities dipped further.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

“All eyes” on 200-day moving averages

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it tracked sideways following a volatile 24 hours’ trading.

Existing market weakness was compounded by an announcement from U.S. regulators concerning Ethereum (ETH) staking, with major crypto exchange Kraken forced to suspend its staking operations and pay a $30 million fine.

Bitcoin fell to three-week lows as a result, with traders eyeing potential retests of $20,000 and even $19,000 to come.

On the day, stocks offered little by way of comfort to risk asset traders, with the S&P 500 opening down to cross a significant line in the sand left over from late last year.

U.S. dollar strength also bided its time, with a hopeful take from Investment research resource Game of Trades eyeing resistance which it may fail to overcome.

“USD has been rejected from its macro uptrend line that’s now turned to resistance. Confirmation is key though,” it summarized on Twitter.

U.S. dollar index (DXY) annotated chart. Source: Game of Trades/ Twitter

Scott Melker, known as “The Wolf Of All Streets,” meanwhile saw cause for optimism on 4-hour timeframes when it came to Bitcoin. A comeback could still materialize if it were accompanied by a rebound in relative strength index (RSI) values.

“This looks ripe for a bounce. RSI oversold with potential bullish divergence,” he told Twitter followers in a fresh update.

“Need to wait until the next candle close and see if we get an ‘elbow up’ on RSI. Testing 200 MA for first time since Jan 6th. $21,646 is also key support, exactly where price bounced.

An accompanying chart showed spot price proximity to the 200-day moving average (MA) mentioned. This remains a key trend line which Bitcoin only recently reclaimed after trading below it since late 2021.

BTC/USD annotated chart. Source: Scott Melker/ Twitter

“All eyes on Bitcoin’s 200-day moving average cloud,” Caleb Franzen, senior market analyst at Cubic Analytics, continued on the topic.

BTC/USD 1-day candle chart (Bitstamp) with 200MA. Source: TradingView

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