Bitcoin Is Testing Two Key Chart Levels

[Trading With Larry Benedict]( Bitcoin Is Testing Two Key Chart Levels By Larry Benedict, editor, Trading With Larry Benedict The S&P 500 has recently been pushing toward new high ground. But one “risk-on” asset is not keeping up. Bitcoin peaked back in mid-March and has yet to revisit the prior highs. The largest cryptocurrency has followed a similar path to the S&P 500 since the start of 2023. Both showed uptrends marked by higher highs and higher lows along the way. But Bitcoin stalled out seven months ago. That comes as a surprise to many. Bitcoin and other cryptocurrencies have developed a reputation for reflecting bullish trends in the stock market. So let’s check in on Bitcoin’s recent price action and see what could be in store next… Recommended Link [Market Wizard Makes Shocking Prediction]( [image]( Market Wizard Larry Benedict accurately predicted the 2020 and 2022 crashes. To hear his latest prediction – including the name of his #1 stock to protect yourself – [go here](. -- Regaining Momentum After peaking around $73,000 in March, Bitcoin has made a series of lower highs and lower lows in price. Price action is also chopping around the 50-day moving average (MA; blue line). [chart] ([Click here to expand image]( But Bitcoin started showing signs of trying to reverse the downtrend back in September. Bitcoin fell toward the $53,000 level at “A” in August. Its attempt to rally over the 50-day MA failed. Then the price tested that level again at “B.” But look at what has developed with the Relative Strength Index (RSI) in the bottom panel. RSI measures changes in underlying momentum. A stock’s momentum helps traders identify the strength or weakness of any price move. The RSI made a higher low (shown with the dashed line) even though Bitcoin’s price fell to a similar level at “A” and “B.” That’s a divergence showing positive momentum. After that, Bitcoin has seen a more sustained move back above the 50-day MA since late September. But that’s brought Bitcoin back to two key hurdles that have turned the crypto lower several times since its March peak. Here are the levels to watch now… Free Trading Resources Have you checked out Larry’s free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Back to Key Resistance The recent rally in Bitcoin has brought both the price and the RSI to key levels. Take another look at the chart below: [chart] ([Click here to expand image]( The dashed line shows price resistance since Bitcoin peaked back in March. The price is right back at trendline resistance. That trendline has been tested on five occasions this year, with the price turning lower each time. Also, note what’s happening in the RSI panel. The shaded area is right around the 60 level on the RSI. That’s important to note because 60 on the RSI often serves as an overbought zone when the price is in a downtrend. Ever since Bitcoin peaked in March, the RSI has struggled to sustain a move over the 60 area. Each time Bitcoin’s price has moved lower from trendline resistance, the RSI peaked at the 60 level and turned lower. And now, Bitcoin’s price and RSI are right back at those key levels. If Bitcoin is rejected again, then watch for a move back to the 50-day moving average near $60,000. Regards, Larry Benedict Editor, Trading With Larry Benedict P.S. If you enjoy these kinds of trading essays, I’d love to hear about it. You can send me stocks you’d like to see analyzed at feedback@opportunistictrader.com. And if you’d like to start following the trade alerts I send out to my followers, One Ticker Trader is a great place to begin. You can learn more about how to join that service – and receive a special offer – by going [right here](. [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@opportunistictrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](