10K remains key resistance for BTC with 9.1K important trading support

May 20, 2020 • 3 Min Read

Similar to other risk assets, such as the S&P 500, BTC has traded in a relatively narrow range under resistance through May. A breakout in either direction from the recent trading range is likely to signal BTC’s next tactical  directional shift. 10k followed by 10.5k remain the levels traders are fixated on but 9.1K also remains an equally important trading level to be aware of.

Our bias is for an upside breakout to develop given BTC’s short-term (15-dma), intermediate-term (50-dma) and longer-term (200-week sma) trends remain positive. In addition, the advance-decline line for the FS CryptoFX 10 large-cap index is in a confirmed uptrend defined by a series of higher high and higher lows. BTC is also trending positively to the S&P 500 recently establishing 7-month relative high and it is challenging its 2018-2020 relative performance downtrends to gold and the TLT bond ETF. An upside rally above 10-10.5K resistance would likely be accompanied by an upside trend reversal to gold and the TLT confirming a new bullish uptrend to both. However, we also fully appreciate the risk of prejudging any technical pattern before it has resolved, a lesson we have learned once too often over the past 28 year of doing technical research. In fact, 9.1K, just below BTC’s rising 1...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Crypto subscription is required in order to access this content.

*Free trial available only on a monthly plan

Reports you may have missed

BITCOIN (BTC) “CRYPTO-WINTER” LOOKS TO BE OVER.  A BULLISH 2024 LOOKS LIKELY TECHNICALLY FOLLOWING A 1Q CONSOLIDATION. Bitcoin looks to be giving off strong signals that the crypto-winter that has kept most coins in bear markets over the last couple years has finally run its course.  The act of having taken the lead ahead of many cryptocurrencies in finally surpassing the 50% retracement area of its entire decline from 2021...

Tuesday produced nearly a textbook breakout which not only exceeded late June and early July highs in ^SPX 0.72% , but also successfully exceeded 3-4 month downtrends for ^SPX 0.72%  and DJIA -0.09% .  Seven of the 11 S&P Select SPDR ETF’s were higher by more than 3%, and volume was nearly 10/1 bullish on NYSE and NASDAQ, producing a “90% Up day” in volume.  Hourly charts show this breakout above the two former peaks...

Sign in to read the report!

We have detected you are an active member!

Ray: 80a3af-34a1ae-37e696-a1190c-19ce21