The benchmark cryptocurrency is currently in a bid to establish itself at the January-February support level. This support level coincides with the 0.236 Fibonacci level. This is an impressive achievement for the BTCUSD taking into consideration the fact that prices retraced from the $65000.00 peak down to the 0.618 Fib level in just two strong waves. The bull run from the confluence of support at 0.618 took just a single massive wave beating the $49000.00 resistance in the process.
Two alternating dojis have been formed, the former being a bearish one possibly indicating some drawback in bullish momentum as well as profit taking by most swing traders. The later doji is bullish, and if bulls are able to hold on to the $50000.00 handle, it will be easy for prices to overshoot the previous All-Time-High. This notion is based on the fact that the 30 Moving Average is offering some support as well, creating a triple confluence of support.
On the contrary, since the 10 MA which is the faster MA, but is still below the 30 MA, caution is to be taken before throwing in bullish bets as the market waits for a bullish crossover. In the event that this crossover fails to materialise, prices might collapse towards the ascending support line. After the retest of this support can the market then move further up.
If the previous bullish run is anything to learn from, then after every 4 to 5 bullish candles there has to be at least 2 to 3 bearish candles before the bullish drive can continue. This pattern ought to be respected in order to safely keep up with the long-term upward trend.
