Bitcoin Stays Strong After Yesterday’s Upside Move
Bitcoin is currently trying to settle above the 20 EMA at $47,100 while other cryptocurrencies are mostly flat as traders wait for the results of this test. Ethereum is testing the resistance at $3,400. Dogecoin is trying to settle back above $0.24 while XRP is stuck near $1.09.
Bitcoin has been volatile in recent trading sessions after a fake press release stated that Walmart would partner with Litecoin. This press release was quickly refuted, and Bitcoin found itself under pressure.
However, Bitcoin received support near $44,000 and gained upside momentum as traders rushed to purchase Bitcoin after the pullback. If Bitcoin manages to settle above the 20 EMA and moves closer to the psychologically important $50,000 level, other cryptocurrencies will get more support.
Bitcoin is currently testing the resistance level at the 20 EMA. In case this test is successful, it will head towards the next resistance at $48,000. A move above this level will push Bitcoin towards the major resistance at $50,000.
In case Bitcoin manages to settle above the psychologically important resistance level at $50,000, it will gain additional upside momentum and head towards the resistance at $51,500. A successful test of this level will push Bitcoin towards the next resistance which is located near the recent highs at $53,000.
On the support side, a move below $47,000 will push Bitcoin back towards the support at $46,000. If Bitcoin settles below this level, it will move towards the support at the 50 EMA near $45,200.
A successful test of the support at the 50 EMA will open the way to the test of the next support at $44,000. In case Bitcoin declines below this level, it will head towards the next support which is located near the recent lows at $42,600.
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This article was originally posted on FX Empire