The Day Ahead
It is a quiet Friday session, with no US economic indicators to influence investor sentiment.
The lack of external market forces will leave the crypto news wires in focus. The US banking sector, SEC v Ripple case-related chatter, and Binance and Coinbase (COIN)-related news will move the dial. Regulatory activity and US lawmaker chatter will also draw interest.
Bitcoin (BTC) Price Action
This morning, BTC was flat at $29,339.
Technical Indicators
Resistance & Support Levels
BTC needs to avoid the $29,279 pivot to target the First Major Resistance Level (R1) at $29,648. A move through the Friday high of $29,589 would signal an extended bullish session. The crypto news wires should be crypto-friendly to support an extended rally.
In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $29,957 and resistance at $30,000. The Third Major Resistance Level (R3) sits at $30,635.
A fall through the pivot would bring the First Major Support Level (S1) at $28,970 into play. However, barring a data-fueled sell-off, BTC should avoid sub-$28,500. The Second Major Support Level (S2) at $28,601 should limit the downside. The Third Major Support Level (S3) sits at $27,923.
Looking at the EMAs and the 4-hourly candlestick chart (below), it was bullish signals. BTC sat above the 50-day EMA ($28,672). The 50-day EMA crossed through the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, sending bullish signals.
A hold above S1 ($28,970) and the 50-day EMA ($28,672) would support a breakout from R1 ($29,648) to target R2 ($29,957) and $30,000. However, a fall through S1 ($28,970) would bring the 50-day ($28,672) and 100-day ($28,666) EMAs and S2 ($28,601) into view. A fall through the 50-day EMA would send a bearish signal.
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