BTC recaptures its 50-dma – ALTs beginning to move to the upside
Cryptocurrencies have consolidated through April similar to other risk assets -Major cryptocurrencies stalled over the past two weeks following rebounds into resistance levels near declining 50-dma’s. This behavior is similar to what developed in many risk assets, notably equities where cyclical indices, such as the Russell 2000, have stalled in sideways trading ranges heading into last week’s option expiration.
However, signs of improvement for BTC taking hold - BTC, for example peaked under its 50-dma on April 7th and has been in a sideways range since. However, over the past few days, BTC has recaptured both its 15-dma and 50-dma and appears poised to rally. A move above resistance at the April highs between 7.1-7.4K would signal BTC is starting its next upside move. Next resistance is near 8K at BTC’s declining 200-dma coinciding with BTC’s 62% retracement of the 2020 decline. Stepping back for perspective of the long-term, BTC continues to repair the damage that developed from the downside break in March and remains above key support at its 200-week sma coinciding with a curved long-term uptrend.
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