Bitcoin Rebounds: What Happens Next?
Bitcoin (BTC) rebounded to $28,000 following positive news of the Grayscale victory against the SEC.
Prior to this news, on August 17th, Bitcoin experienced its worst day this year, reaching a low of 13%, before closing the day on a 7.5% loss. The cryptocurrency is currently hovering around the $25,000 support level.
Chart by TradingView
Is Bitcoin in an uptrend?
While the 1-day 6% rebound to $28,000 on Tuesday is good news for the market, it doesn't necessarily mean that the cryptocurrency market has resumed its uptrend yet.
For an asset to be considered in an uptrend it needs to break through a resistance level, and Bitcoin has yet to do so. The first minor resistance level for BTC comes at $28,800, which was the coin's previous support level.
The 150 Simple Moving Average (SMA) is also another hurdle Bitcoin needs to clear out in order to solidify and uptrend.
The 150 SMA works as a mobile support and resistance. When Bitcoin is above the 150 SMA, it keeps the price from dropping below it, while when BTC is below the 150 SMA, it keeps the price from going higher.
Looking Ahead: While Bitcoin appears to be at the start of a new uptrend, clearing the $28,800 level and the 150 SMA will be essential in confirming the uptrend.
