Crypto Daily – (BTC) recovered wonderfully well from the dip that took it all the way down to $89,000, and is now cruising at $97,000. That said, key resistance is at hand. Will the bulls be able to surmount this and head to a new all-time high, or is another rejection about to take place?
S&P dips to channel bottom
Source: TradingView
One of the major factors that has taken Bitcoin down over the last week or so is the nervousness in the U.S. stock market. Looking at the chart of the S&P 500 it can be seen that last week’s candle dropped 2.65%.
That said, this week’s candle does so far look to be bouncing from the bottom of the ascending channel. The CPI data due out later today will no doubt have a large impact on whether the bounce will continue, or whether the price falls through the bottom of the channel.
It must be borne in mind that whatever direction the stock market chooses to go, Bitcoin will definitely be going the same way.
MicroStrategy buys as usual, but U.S. Spot Bitcoin ETFs are subdued
On the demand side of things, Michael Saylor’s MicroStrategy announced its customary buy on Monday, and another 2,530 BTC were added to its treasury, bringing its total holdings to 450,000 BTC.
In contrast, the U.S. Spot Bitcoin ETFs have been very subdued during the last week of downside price action, and therefore inflows and outflows generally canceled each other out.
$BTC rejection about to take place?
Source: TradingView
The daily chart for $BTC shows how the price has arrived at the important horizontal resistance. This resistance is also bolstered by the 50 SMA. With all short-term momentum indicators topped out, it would probably point to a rejection taking place from here. If the bulls can somehow force the price higher, the descending trendline above may then provide the rejection.
50 SMA provides perfect weekly support
Source: TradingView
As opposed to very complex indicators which use all kinds of measurements and signals, the Simple Moving Averages are excellent sources of information, especially in the higher time frames.
In the weekly chart above, the 50 SMA provides a very clear guide to the Bitcoin bull market. It can be seen that in the bull market price action stays above it all the way through, except for the odd candle wick that may dip under. That said, if one goes back to the 2017 bull market, the 50 SMA did not start turning down until well into the bear market.
Finally, if one looks at the latest price action, the long candle wicks underneath give the look of a rocket ship taking off. This can be translated into strong buying whenever the price comes down to the ascending trendline. Could a lift-off be about to take place soon?
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
