Bitcoin Is Moving Higher
Bitcoin managed to settle above the resistance at $42,600 and is testing the next resistance level at $44,000. Ethereum is also moving higher. The world’s second biggest cryptocurrency is currently trying to settle above $3,100. Dogecoin is testing the resistance at $0.2255, while XRP is trying to settle above $1.00.
The recent sell-off in crypto markets was fast, but most cryptocurrencies quickly managed to gain upside momentum which is a bullish sign. Bitcoin Dominance, which measures the market capitalization of Bitcoin as a percentage of total crypto market capitalization, has also moved lower, which is typical for days when crypto markets are in a bullish mood.
It looks that crypto markets have shrugged off fears about the potential default of China’s developer Evergrande, which have put significant pressure on riskier assets earlier this week. The recent commentary from Fed Chair Jerome Powell was a bit more hawkish than expected but markets remained optimistic.
Bitcoin is currently testing the nearest resistance level at $44.000. In case this test is successful, Bitcoin will move towards the next resistance which is located at the 50 EMA at $45,300. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
In case Bitcoin manages to settle above the 50 EMA, it will continue its upside move and head towards the 20 EMA which is located near the $46,000 level. A move above this level will push Bitcoin towards the next resistance at $47,000. If Bitcoin gets above this level, it will head towards the resistance at $48,000.
On the support side, the previous resistance at $42,600 will serve as the first support level for Bitcoin. A successful test of this level will push Bitcoin towards the support at $41,300. If Bitcoin declines below this level, it will head towards the support at $40,000. A move below $40,000 will open the way to the test of the support at $39,300.
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