BTCUSD - Fundamentals and Technicals
If there are any people who haven't heard - Bitcoin halving is expected to occur this month.
What does that mean? - I hear you ask.
It's a process embedded in the code of the cryptocurrency, which essentially halves the reward which Bitcoin miners receive per block in half.
In anticipation of the event, BTCUSD has risen recently and earlier today it broke above 9000$. The market is also trading above it's 200 day moving average.
BTCUSD Daily Chart
As that move happened, on a daily chart, the asset entered into overbought territory, which combined with the entering of a resistance zone below the 10k handle, stopped it's advance.
BTCUSD Weekly Chart
To give you an idea of where we are trading in terms of historical price levels, we can see on the weekly chart that above 7800, we enter a zone (8000-12000) which has proved to be a range/resistance zone in the 2019 rally. Whilst BTC managed to get through it in the last rally, it only went as high as 13823.65 before returning into that zone, and selling off sharply in the beginning of 2020.
From here onwards, the first hurdle is the 10k handle. Getting through that shouldn't give bulls much optimism, as a sustained rally and potential attack of all time highs, could only be on the cards, once a clear break above the 2019 high is made.