Bitcoin (BTC/USD) Outlook: Can Bitcoin Bulls Maintain On?Bitcoin continues to take care of the upward trajectory that has prevail
Bitcoin (BTC/USD) Outlook:
Can Bitcoin Bulls Maintain On?
Bitcoin continues to take care of the upward trajectory that has prevailed since March 2020, buoyed by US Greenback weak point and world financial circumstances. Though the current rally has seen a rise within the demand for Bitcoin and different main cryptocurrencies, the sustainability of the bullish pattern is being questioned after costs reached an all-time excessive on December 1, 2020, leading to BTC/USD surging over 160% within the year-to-date.
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Whereas fundamentals might play a job in figuring out the subsequent massive transfer, with US stimulus talks and considerations surrounding free financial coverage weighing on investor sentiment, buying and selling psychology will seemingly be a further driver of value motion, with many fearing the reoccurrence of 2017’s occasions, when the ‘Bitcoin bubble’ finally burst.
Bitcoin Worth Motion Seeks Path
After reaching an all-time excessive of $19,861, the momentum of the uptrend subsided, pushing value motion right into a confluent zone, between the Fibonacci retracement ranges (between September 2020 and December 2020) which proceed to carry as help and resistance. On the every day time frame, value motion stays throughout the parameters of the Bollinger Bands, whereas the Relative Energy Index (RSI) hovers round 60.
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Bitcoin (BTC/USD) Each day Chart
Chart ready by Tammy Da Costa, IG
Night Star Formation might Maintain Bulls at Bay
In the meantime, the formation of an Night Star on the two-hour chart suggests {that a} bearish reversal is possible, however so long as the uptrend stays intact a bullish continuation can’t be dominated out.
Bitcoin (BTC/USD) 2-Hour Chart
Chart ready by Tammy Da Costa, IG
For now, the 20-period Transferring Common (the central line utilized in Bollinger Bands) continues to supply help at $18,636. A break under this degree might see the 23.6% retracement degree coming into play as help at $17,515.64. Nevertheless, if bulls are in a position to preserve management, the December excessive might as soon as once more be examined, in addition to resistance on the key psychological degree of $20,000.
— Written by Tammy Da Costa, Market Author for DailyFX.com
Contact and comply with Tammy on Twitter: @Tams707