- Bitcoin price saw a massive spike in buying pressure, resulting in a 5.6% upswing.
- This move pushed BTC to slice through the 30-day and 50-day EMAs, denoting a shift in market structure.
- A daily candlestick close below October 21 swing low at $18,600 will invalidate the bullish thesis.
Bitcoin price has shown considerable bullish momentum over the past 24 to 30 hours, which has resulted in a massive rally for many altcoins. This development is likely to continue after a minor pullback. So investors that missed this rally should be cautious about entering the market late and getting caught in the wrong direction.
Bitcoin price shoots higher
Bitcoin price rallies 5.6%, making it the first volatile move after weeks of consolidation around the $19,000 region. This run-up has sliced through the 30-day and the 50-day Exponential Moving Averages (EMAs) at $19,520 and $19,793, respectively. Notably, this is a huge development from a market structure perspective as it indicates the potential end of the consolidative regime.
While the rally is bullish, no doubt, investors need to pay close attention to the Relative Strength Index (RSI). This momentum indicator is currently at 60, where Bitcoin price has faced rejection six times since April. The chances of BTC getting rejected at this level are high, hence market participants should either wait for a pullback or a flip of the resistance level seen on the RSI.
Even if Bitcoin price disregards the resistance level noted on the RSI, it will face the $20,742 resistance level. Therefore, entering a long position now would be nothing short of FOMO and would be costly for the investors if BTC takes a U-turn.
The ideal places for accumulation include a retest of the 50-day EMA at $19,793 or the 30-day EMA at $19,520. A bounce off these levels could be the foothold that Bitcoin price requires before retesting the next targets at $22,181 and $23,711.
BTCUSD 1-day chart
While the overall outlook for Bitcoin price and the crypto landscape seems to be changing for the better, we’re not out of the woods yet. A daily candlestick close below the October 21 swing low at $18,600 would create a lower low and invalidate the bullish thesis for BTC.
This development could see Bitcoin price attempt a sweep of the June 18 low at $17,593 to find a support level.
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