Bitcoin Holds 30K, Tags the 50-day SMA
Bitcoin has bled lower for the last three weeks, but some interesting things appeared on the chart today.
First, BTCUSD made a brief stab under $30,000 before recovering. That’s not just a psychologically important “round number.” It also matches the consolidation zone at the end of 2020 and the start of this year. That was a key breakout line at the time and provided support last Thursday. Buyers may be more willing to pursue higher prices now that it’s held.
Second, BTCUSD’s low today of $29,150.49 was just slightly below the 50-day simple moving average (SMA). It’s the first test of that key line since prices started running in early October.
Finally, as this 1-minute chart shows, the movement started exactly at 2pm ET – the same time that the Federal Reserve issued its monetary-policy statement. That’s consistent with professional asset managers: waiting for the big market event to pass before putting money to work.
The next thing to watch on BTCUSD is the declining trend line in place since January 14. A breakout through that resistance could potentially signal the cryptocurrency is ready to continue its run.
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First, BTCUSD made a brief stab under $30,000 before recovering. That’s not just a psychologically important “round number.” It also matches the consolidation zone at the end of 2020 and the start of this year. That was a key breakout line at the time and provided support last Thursday. Buyers may be more willing to pursue higher prices now that it’s held.
Second, BTCUSD’s low today of $29,150.49 was just slightly below the 50-day simple moving average (SMA). It’s the first test of that key line since prices started running in early October.
Finally, as this 1-minute chart shows, the movement started exactly at 2pm ET – the same time that the Federal Reserve issued its monetary-policy statement. That’s consistent with professional asset managers: waiting for the big market event to pass before putting money to work.
The next thing to watch on BTCUSD is the declining trend line in place since January 14. A breakout through that resistance could potentially signal the cryptocurrency is ready to continue its run.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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