The bulls and bears are battling it out near the 200-day simple moving average for Bitcoin
Bitcoin (BTC) is going through a stiff competition the bulls and the bears near the 200-day simple moving average which is known to be a very crucial level by institutional investors trying to decide if the asset is bullish or bearish. There are crypto investors who are noticing the formation of a golden cross in Bitcoin. If this bullish setup is finished then it will point out a trend in favour of the bulls. Investors are trying to concentrate on specific altcoins.
On the other hand, Bitcoin reached another high as miners created the 700,000th block on Sep. 11 Bitcoin was trading near $8,000 when the 600,000th block was reached on Oct. 18, 2019. “Every day that goes by and bitcoin hasn’t collapsed due to legal or technical problems, that brings new information to the market. It increases the chance of Bitcoin’s eventual success and justifies a higher price.”
Bitcoin closed under the 200-day SMA ($45,894) on Sep. 10 but bears have not been successful to capitalize on this move. The bulls at the present are trying to push the price above the 200-day SMA. The moving averages are close to completing a golden cross pointing out that advantage is mostly going to be in favour of the bulls. If buyers increase the price above the $47,399.97, the BTC/USDT pair will try to increase above the overhead zone of $50,500 to $52,920.
The bears will mostly defend the overhead zone belligerently but if bulls will not give up much ground, the likelihood of a break above the $52,920 increases. If that happens, the pair could rally up to $60,000. If the price turns down from the present level it means that bears will defend the 200-day SMA. The pair could then retest the critical support at $42,451.67. a break under this level could suggest that the advantage is in favour of the bears.
The long wick on the candlestick on Sep. 7 means that bulls aggressively bought the dip to the 50-day SMA ($1.10). Tough purchase on Sep. 8 pushed Algorand (ALGO) above the stiff overhead resistance at $1.84. The bears tried to confine the bulls by decreasing the price under the breakout level at $1.84 on Sep. 10 but the buyers had other plans. The ALGO/USDT pair bounced off the support with strength today and bulls at the present are trying to push the price above $2.49. if they succeed this stage the pair can continue the uptrend with the first target on the upside at $3 and then $3.32. nonetheless, if the price once again turns down from $2.49, the pair can go down to $1.84 and stay range-bound between these two levels for the upcoming days. A break and close under $1.84 means that the present breakout was a bull trap. The pair could then slide to $1.60.