Bitcoin Looks Unconvincing as it Tries to Resume the Upside Momentum
The latest round of crypto selloffs has stopped at least, after the rout we saw in this market until Tuesday. It sent cryptocurrencies tumbling below May’s lows, opening the door for further declines in this market.
But, the good thing was that there was no follow-through, and the price reversed back up after the break of the support in most cryptos. This might have looked like a stop hunt – this is when big players deliberately push the price beyond a support/resistance area to trigger some weak stop losses.
This kind of trading hasn’t yet come to the crypto market yet, but who knows? Whatever the case, cryptos are now trying to move higher, but it looks more like a crawl. BITCOIN reversed after diving below $30,000, although the climb stopped at the 20 SMA (gray) on the H4 chart.
This moving average was pushing the price down overnight, but it seems like the buyers have returned, and they are trying to push the BTC/USD above the 20 SMA. However, the bullish momentum looks weak, so we will wait and see whether Bitcoin turns properly bullish. That would be the case if Bitcoin pushed above the moving averages and the resistance zone around $42,000.
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