BTC’s short-term trend turns positive – 7K next hurdle followed by 8K
BTC – A volatile week but holding key trend support at the 15-DMA with potential to challenge 7K
Despite all the macro volatility spillover across markets, BTC’s short-term technical setup is improving with the potential to challenge and break-out above formidable trading resistance near 7K. After a roller coast ride over the past two weeks that included stalling under 7K resistance on 3/20 through 3/26, hitting an air pocket and gapping down 10% on 3/29, BTC has managed to hold and rally from a now rising 15-DMA twice over the past three days.
What does all this mean technically?
While the 15-DMA is not perfect, it has been a reasonable proxy for BTC’s short-term trend, with today’s retest and bonce from 6137 reinforcing its significance. In other words, while BTC is arguably range bound in a congested technical band at 6-7K trading range, the rising 15-DMA supports staying long using the recent low at 6137 as a stop loss in anticipation of a potential break-out above 7K resistance. The 4-hour and daily charts for BTC on slides 3-4 may appear noisy but a move above next resistance near 7K should see BTC push toward its next resistance band coinciding with another 62% retracement band.
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