BTC/USD PRICE OUTLOOK: BITCOIN RECEDES FROM RECORD HIGH, RSI DIVERGENCE IN FOCUS
- Bitcoin exploded previous $60,000 over the weekend to hit a contemporary document excessive
- BTC/USD value motion has since pivoted decrease with its relative power index
- Crypto outlook appears juxtaposed by stimulus checks and surging actual yields
- Go to the DailyFX Training Heart to sharpen your technical evaluation abilities!
Bitcoin (BTC/USD) has been on a tear greater since bottoming out round $45,000 on the finish of February. In truth, the favored cryptocurrency prolonged to a brand new document this previous weekend after spiking above the $60,000-price stage. It’s probably not a coincidence that Bitcoin noticed power on the similar time retail buyers have been receiving their newest spherical of stimulus checks. BTC/USD value motion now appears like it’s beginning to recoil decrease, nonetheless.
This might observe merchants unwinding publicity forward of high-impact occasion threat posed by the upcoming Fed assembly. Although the Federal Reserve is unlikely to weigh in on Bitcoin particularly, the central financial institution stands to maneuver the needle for the US Greenback and actual yields, which may not directly affect urge for food for speculative property akin to crypto. BTC/USD would possibly face extra promoting strain, for instance, if the US Greenback strengthens additional alongside one other sharp transfer greater in actual yields.
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BTC/USD – BITCOIN PRICE CHART: DAILY TIME FRAME (27 DEC 2020 TO 15 MAR 2021)
Chart by @RichDvorakFX created utilizing TradingView
Taking a look at a each day Bitcoin chart we are able to see that BTC/USD value motion has already probed the 38.2% Fibonacci retracement stage of its newest bullish leg. That is an space of confluent help roughly coinciding with February highs and its 8-day easy shifting common. A breakdown of this technical zone across the $55,000-price stage may see a deeper pullback come into play. In that case, the 20-day and 50-day easy shifting averages would possibly function the subsequent layers of protection. To that finish, a continuation of unfavourable divergence on the relative power index stands out as an encouraging technical improvement for Bitcoin bears.
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— Written by Wealthy Dvorak, Analyst for DailyFX.com
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