Wednesday Market Minute: Bitcoin Bulls Face Inflection Point

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Bitcoin has suffered one of its meteoric rallies, with futures / BTC surging 26% from Wednesday, September 29 lows to yesterday’s close. The price went from trading below most of its major moving averages to breaking and closing above them, this rapid rebound also causing the 21 and 63 day exponential moving averages to return to a trend. up or down.

These developments would generally be viewed as bullish, as would others like the Parabolic SAR Crossover, MACD Crossover, and yesterday’s close above the upper Bollinger Band. However, the future of the cryptocurrency must first break past its previous highs near 53,170, or it could mark the start of trade tied to a range between double-top resistance and the recent price floor near. from 41,000.

This also happens because / BTC is close to its annual linear regression line around 52,290. This indicator creates a “best fit line” and suggests that the price is in fact at fair value. When trading commodities with as much volatility as bitcoin, it may be useful to look at shorter moving averages due to their greater sensitivity to price changes, like the 9-day EMA now near 47,900. on the decline.

Most of the other major moving averages are clustered relatively tightly between 44,480 and 46,380, so this will be another key area to watch. As for the upside, look for potential resistance around 60,000, where prices last peaked.

Image from Pixabay

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