BTC’s price movement show a market healthy as ever

Even though volume over the last five trading sessions was relatively low the significance of its speedy return to a bullish market impressed me especially when you look at how shallow the correction was. Yesterday’s small gain was enough to take prices back above the 23% Fibonacci retracement level ($10,697) of the nearly $8,000 climb since March. Pricing only dipped below this level for six trading days and really the pullback boiled down to four days in which Bitcoin futures gave up approximately $2,000 in value.

At the bottom of the correction was the 100-day Moving average which acted truly as support for the first time in this particular market. Today BTC futures on the CME opened above the 50-day moving average and the low did not extended past the 23% Fib. level. So BTC is back above all its recent support levels and not only did pricing not dip into or bellow our Fibonacci harmonics or the descending top BTC finally broke above at the end of July.

Now above all major moving averages whose alignment is in a fully bullish correlation and the gaps continuing to widen BTC futures look poised to take open minor resistance at $11,500 by next week. Also, when pricing was at these levels in August the RSI was showing overbought this time it is right in the middle at 49 indicating this move has a lot more momentum before being overcrowded. I can not recall a time when BTC looked this stable and bullish at the same time.