Bitcoin Technical Outlook: BTC/USD Rally Stalls

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Bitcoin, BTC/USD – Technical Outlook:

  • BitcoinThe short-term trend is still bullish.
  • The recent lull in the rally appears to be a consolidation more than anything.
  • What’s next for BTC/American dollar and what are the key levels to watch?

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BITCOIN SHORT TERM TECHNICAL OUTLOOK – BULLISH

Bitcoin’s technical outlook has improved in recent weeks after repeated breaks above key resistance areas and the break in recent days appears to be a consolidation given the pace and extent of growth since the end of last year.

BTC/USD short-term technical bias shifted to bullish after it broke above a decisive ceiling on the 89-day moving average (significant barrier since mid-2022), coinciding with another barrier at the mid-December high of 18370. The subsequent break above . the 200-day moving average confirmed that the short-term downward pressure had indeed faded.

BTC/USD Daily Chart

image1.png

Chart Created With TradingView

Having said that, momentum, while still bullish, has eased a bit in recent days, as the accompanying daily chart shows. In a way, the stage in price is not surprising given the almost 40% jump since the end of December. This comes just as BTC/USD approaches another limit at the August 2022 high of 25200, near the 200-week moving average (now at around 24650). As the previous update noted, BTC/USD needs to clear the 24650-25200 area for the medium-term downward pressure to ease.

BTC/USD Weekly Chart

image2.png

Chart Created With TradingView

There have already been tentative signs in recent months pointing to the possibility of a broader base building in cryptocurrencies. See the mid-November update, which maintained the short-term outlook as neutral. For the near-term outlook to remain bullish, BTC/USD must remain above the key cushion zone at 18370-19650, which includes the 200-day moving average and the mid-December high.

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— Written by Manish Jaradi, Strategist for DailyFX.com



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