Technical Analysis – BTCUSD gets capped by 200-day SMA
October 5, 2023 1:26 pm
Bitcoin in a steady advance, jumping above crucial descending trendline
Despite the jump above 28,000, 200-day seems a tough obstacle
Death cross points to losses but momentum indicators diverge
BTCUSD (Bitcoin) has been forming a structure of higher highs and higher lows since its bounce off the September bottom of 24,915. Interestingly, the completion of a bearish cross between the 50- and 200-day simple moving averages (SMAs) has failed to trigger a decline.
If buying interest intensifies, the king of cryptos could initially attempt to break above the 200-day SMA before it tests the recent rejection region of 28,592. Even higher, the crucial 30,000 psychological mark could prove to be a tough one for the price to overcome. A jump above that zone may pave the way for the April peak of 31,064.
On the flipside, should the price reverse lower, the recent support of 25,980 could act as the first line of defence. Piercing through that floor, the digital coin might then descend towards the June bottom of 24,750. Further retreats could then come to a halt at 22,774, which has acted both as support and resistance in the past few months.
Overall, BTCUSD seems to be extending its recent upside move amid diverging technical signals. Nevertheless, a break below the downward sloping trendline could be the starting point of a fresh downleg.
Bitcoin in a steady advance, jumping above crucial descending trendline
Despite the jump above 28,000, 200-day seems a tough obstacle
Death cross points to losses but momentum indicators diverge
BTCUSD (Bitcoin) has been forming a structure of higher highs and higher lows since its bounce off the September bottom of 24,915. Interestingly, the completion of a bearish cross between the 50- and 200-day simple moving averages (SMAs) has failed to trigger a decline.
If buying interest intensifies, the king of cryptos could initially attempt to break above the 200-day SMA before it tests the recent rejection region of 28,592. Even higher, the crucial 30,000 psychological mark could prove to be a tough one for the price to overcome. A jump above that zone may pave the way for the April peak of 31,064.
On the flipside, should the price reverse lower, the recent support of 25,980 could act as the first line of defence. Piercing through that floor, the digital coin might then descend towards the June bottom of 24,750. Further retreats could then come to a halt at 22,774, which has acted both as support and resistance in the past few months.
Overall, BTCUSD seems to be extending its recent upside move amid diverging technical signals. Nevertheless, a break below the downward sloping trendline could be the starting point of a fresh downleg.
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