Bitcoin remains stuck between 100 and 200-day moving averages
- Bitcoin stages a technical correction on Saturday, trades above $9,300.
- Buyers are likely to remain in control as long as the 200-day MA holds.
After gaining more than 20% in 48 hours toward the end of October, Bitcoin (BTC/USD) rose above the critical 200-day moving average (MA) and has been moving sideways above that level this week. After testing the $9,000 handle on Friday, the BTC/USD pair staged a technical recovery on Saturday and was last seen trading at 9,350, adding 1% on a daily basis.
Technical levels to consider
The daily chart reveals that the pair has been fluctuating between the 100-day and the 200-day MAs in the past seven trading days. If the pair succeeds to make a daily-close above $9,600 (100-day MA) it is likely to target $10,000 (psychological level/Fibonacci 61.8% retracement of June rally/October 28th high) in the near-term ahead of $10,540 (October 26th high). Additionally, if the 200-day MA crosses above the 100-day MA, this could also be seen as a bullish sign and attract more buyers into the market.
On the downside, $9,070 (200-day MA) could continue to act as a strong support level and hold against technical sell-offs. Below that handle, $8,500 (20-day MA) could be the next support before $8,000 (psychological level).
In the meantime, the Relative Strength Index (RSI) on the daily chart is inching higher above the 50 mark, suggesting that the pair has more room on the upside before becoming technically oversold.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
