Short-term higher-lows and the 20-dma need to hold.
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Bitcoin (BTC) Back Above $12,000
The cryptocurrency market has nearly tripled in size since the mid-March lows, with Bitcoin rallying hard from $3,910 to $12,470 yesterday. The move higher has been fairly consistent with the few sharp sell-offs seen since March being used as buying opportunities. The mid-May bullish 20-dma/200-dma crossover added a bullish shove while the 20-dma/50-dma crossover near the end of July saw the move higher gain extra momentum. The recent rally has seen the CCI indicator move into overbought territory for the first time in three months, while volatility, using ATR, is also near a multi-month high. While the path of least resistance is for higher prices, there may need to be a period of consolidation before the next move.
The daily BTCUSD chart shows the 20-dma providing support and this should remain the case in the short-term. Initial support is seen around $11,600 off three prior low prints and the 20-dma, while lower down the $11,100 area should provide stronger support. A pair of swing lows dating back to late-June and mid-July 2019, at $13,188 and $13,853 respectively, remain firmly in the bulls’ crosshairs. Short-term trading may soon become whippy, using the ATR as a guide, but any consolidation may offer an opportunity for Bitcoin bulls, as long as the previously mentioned support levels hold.