Some encouraging signs for buyers, but the battle isn’t won just yet
Suddenly the lows under $6,000 feel like a long, long time ago. Bitcoin is trading above $8,000 on the day, and is now above the 200-day MA (blue line). That’s a positive sign for buyers as they look for prices to move higher, but near-term levels say that we’re more at a yellow light currently than a green light for a move higher.
The hourly chart shows that buyers have managed to break above the 100-hour MA (red line) after multiple attempts over the past week, but it’s the 200-hour MA that buyers are falling short of breaching at the moment.
Break above that, and sentiment will turn bullish again and this rebound rally could just have legs.
But once again with crypto, always be cautious on the news. Recent news hasn’t been too helpful in supporting prices, and I don’t see a reason for that changing – if anything, it will be more that investors are getting more used to regulatory/bad news but that doesn’t mean that it won’t impact prices.