Bitcoin Finds Support At 20-Week MA

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The week may not be over, but Bitcoin ($BTCUSD) looks to be finding support at its 20-week MA. The weekly chart is a better gauge of trend, but we need to watch for how 'sell' triggers in the MACD and On-Balance-Volume develop on this time frame.
 


On the daily timeframe, Bitcoin was able to make a last stand at support, although watch how it behaves when it gets to test 20-day and/or 50-day MA. Technicals are net negative and oversold, but when it climbs out and stochastics test the midline, will be a time to consider a short trade.
 


There wasn't a whole lot going down with the indices. The Russell 2000 ($IWM) is the most bullish, but has an On-Balance-Volume 'sell' trigger to contend with.
 


The S&P is toying with form breakout support with weak 'sell' triggers in the MACD, On-Balance-Volume, and ADX. I think this is consolidating for a move higher, but be prepared.
 


While the Nasdaq is looking more likely to undercut its 50-day MA following today's day of technical distribution off a working MACD and ADX 'sell'.
 


For the coming week, watch how Bitcoin tests overhead moving averages on the daily time frame, and if it can hold its 20-week MA by Friday's close. Other indices hold a wait-and-see approach.


More By This Author:

Russell 2000 Benefits From Low Key Buying As Semiconductors Ready To Break
Traders Defend 20-Day MAs As Indices Finished Last Week Strong
Bullish Enthusiasm Wanes As Breakouts Fade - Particularly For Bitcoin
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