Bitcoin (CRYPTO: BTC) broke off a bull flag on August 4th and has continued to rise. On Monday, the top cryptocurrency broke strong resistance and topped $ 45,000.
On Sunday, the US Senate continued to debate the cryptocurrency regulations in the infrastructure bill, which is now expected to receive a final vote on Tuesday before it goes to the House of Representatives.
That weekend, Senators Mark Warner and Rob Portman revised their amendment, attempting to “choose” which cryptos might survive or fail by requiring crypto miners “Proof of Stake” to report to the IRS while they ” Proof of Work “excepted” miners from it. The change has been heavily condemned by the crypto community and both Coinbase Global Inc (NASDAQ: COIN) CEO Brian Armstrong and Tesla Inc (NASDAQ: TSLA) CEO Elon Musk expressed his concern on Twitter.
Bitcoin, however, has not reacted negatively to the news and continues to push up into a price range where it has not traded since May.
See also: How to Buy Bitcoin
The Bitcoin Chart: On Monday morning, Bitcoin surpassed Sunday’s daily high after testing support for the 8-day daily exponential moving average (EMA). The cryptocurrency has risen about 23% since breaking out of the daily bull flag pattern, but with a measured movement of about 43% in the pattern, Bitcoin could soar further north in the coming days.
Bitcoin has a history of support / resistance at $ 44,850 and the 200-day Simple Moving Average (SMA) has leveled out with that. The cryptocurrency struggled at the levels on Saturday and Sunday, but was able to surface above them on Monday. Bulls will want Bitcoin to close above the 200-day SMA for the day, so overall sentiment in the crypto is considered bullish.
Bitcoin is trading above the 8-day and 21-day EMAs, with the 8-day trend above the 21-day trend, both bullish indicators. Bitcoin’s Relative Strength Index (RSI) is slightly high at around 71% and sideways consolidation is required to move Bitcoin out of the overbought territory.
- Bulls want Bitcoin to consolidate in lower time frames to cool the RSI below 70% and then hit big bullish volume and push crypto to higher resistance levels at $ 48,817. If Bitcoin could regain levels as support, it could trade towards the $ 51.191 level.
- Bears want to see large bearish volume and move Bitcoin back below the support of the 200-day SMA and the support level of $ 44,850. If Bitcoin were to lose levels as support, it could fall towards $ 42,233.
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