HomeContributorsTechnical AnalysisBTCUSD Jumps Above 50-day SMA But Advance Losses Steam

BTCUSD Jumps Above 50-day SMA But Advance Losses Steam

BTCUSD (Bitcoin) has been in a downtrend after the price failed to surpass the 25,200 region in mid-August. Although the king of cryptocurrencies has been trading within a tight range in the past month, it broke its sideways pattern to the upside and crossed above its 50-day simple moving average (SMA).

The momentum indicators suggest that bullish forces are subsiding. Specifically, the MACD histogram is weakening above zero and its red signal line, while the RSI is declining but remains above the 50-neutral mark.

Should selling pressures intensify, the price could initially test the 50-day SMA, currently at 19,670. Breaking below that level, the bears might aim for 18,170, which is the lower boundary of the cryptocurrency’s recent rangebound pattern. A violation of the latter could open the door for the 21-month low of 17,588.

Alternatively, if buyers regain control and propel the price higher, the recent rejection point of 20,900 may act as the first resistance. Conquering this barricade, further upside moves could then stall at the September peak of 22,750 before the four-month peak of 25,200 comes under examination. Failing to halt there, the price might then ascend towards 27,950.

All in all, even though BTCUSD exhibited an upside breakout and decisively jumped above its 50-day SMA, its advance seems to be running out of juice. Therefore, a close above the recent ceiling of 20,900 is needed to signal the resumption of the recovery.

XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading