Bitcoin’s price has soared over the past two weeks and with the price action approaching the 200SMA, the question on many trader’s minds is whether this will be enough to stop the bull run? Bitcoin is having its second consecutive loss today but with the drop being on low volume, it looks like the bullish movements are not over yet.
So the key levels of resistance to monitor include $8300 level where the most recent upward movement came to a stop and last week’s highs of $8500. It should not take much volume for buyers to be able to push price action over the $8300 mark. With the 200SMA currently trading near $8500, this level is a whole other question.
Since price action soared past the $6850 level two weeks ago, it has been forming a series of higher highs and higher lows, a sign of a bull market. Its currently trading more tightly in a range and after a number of significant moves to the upside, the 200SMA could prove to be the greatest test of whether price action can continue its bullish movements. 200SMA has been a significant test for the price in the past. The last test of the 200SMA occurred in early May around the $10000. When it failed to break above it, this was the start of a downward movement to sub-$6000 levels.
The 4hr chart shows more clearly the range we are currently trading in. Price has been trading very close to the $8300 resistance level. The longer price action trades near a level, the weaker this level becomes as more sellers are matched with buyers on each test. Current trading has been on low volume, but if some volume enters for a move to the upside, it should be enough pressure to overcome the $8300 mark. In the event of a move to the downside, $7850 is still the key support level.
On the hourly, the 200SMA may act as support in the event of a drop. We are moving towards the lower end of the range we have been currently trading in but in the event of the drop, there should be a number of support levels in place including the 200SMA and the $8000 round psychological number.
- Key Resistance levels include $8300 and $8500.
- $8300 is likely to be overcome, but the 200SMA is trading around the $8500 level which makes it a more challenging area to be broken through.
- Current trading is near the bottom of a tight range which has been on low volume.
- In the event of a drop, hourly SMA and $8000 should act as support levels.
- In the event of a significant drop, $7850 will be a key level.
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Bitcoin Trades Close to 200MA – Will This Stop the Bull Run? was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.