At the time of writing, BTC is trading at $9,288 against USD. If you’ve read my post from last week you’re aware that I was personally hoping for something more aggressive from the bulls in the market. However, the signs remain promising for the BTC/USD pair with the only qualm that comes to mind for me is the fact that not enough momentum is being exhibited via price action – though that is all relative.
Earlier this week, BTC rose from its $9,100 support level and broke a key resistance level at $9,400 before forming a high near the $9,600 mark. Having said this, BTC did break out above its 100 hour simple moving average and has since declined to below various local support levels including $9,320.
Keeping all this in mind, the signs remain positive as the next major resistance zone lies around the $9,240. With the BTC/USD pair trading above this area, there is cause for optimism. This seems to be a natural retracement of the pair after last weeks sessions of hectic, hefty trading and could even be considered a consolidation.
From a trader’s standpoint, if BTC/USD continues to trade above $9,300 to $9,340, then that opens the pair up to further sessions of bullish price action, which could lead the pair to approach the high, formed earlier this week at around $9,582. However, a failure to consolidate in the range of $9,300 to $9,340 would most likely indicate a return to $9,200 and possibly lower.
In my humble opinion, I remain cautious and am looking for a renewed advance and attempt to break $9,600 that would unlock significant upside potential for the pair.