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Bitcoin price stalled for a test of support, but traders see more gains ahead


Key points:

  • Bitcoin is starting to find a local floor, with analysis featuring some major lines in the sand.

  • RSI signals call for upside continuation while longer hours remain in doubt.

  • The fed-cut-cut decision is starting to show in cooling the performance of US stocks.

Bitcoin (BTC) tested key resistance on Tuesday, with traders bullish on BTC price.

BTC/USD four hour chart. Source: Cointelegraph/TradingView

Bitcoin price is teasing new highs next

Data from Cointelegraph Markets Pro and TradingView showed Bitcoin moving around $114,000.

After an impressive weekly close, BTC/USD consolidated gains in Monday’s Wall Street trading session.

Today, trader and analyst Rekt Capital had two important levels of support for the Bulls to reclaim: the 21-week exponential moving average (EMA) at $111,200 and the $114,500 weekly close.

“Bitcoin successfully closed the week above the 21-week EMA (green) and $114.5k (black),” he said X Followers next to a chart.

“Both $114.5K & EMA could get retested to confirm a resurgence of support. $BTC could achieve this with a volatile retest of $114.5k, breaking through the EMA below.”

BTC/USD one week chart. Source: REK Capital/X.

Next to Rekt Capital confirmed That required retest is now “in progress.”

“$BTC bounces back from $113,500 zone support,” crypto investor and trader Ted Pillows added in the sun.

“As long as Bitcoin holds it, we are higher. If BTC loses this level, expect a correction towards the $110,000 level.”

BTC/USDT one day chart. Source: ted pillow/x

Bulls cause expansion is a hidden bullish divergence playing out in the low-time frame of the relative strength index (RSI).

The hourly chart showed the RSI making a lower low as price sealed a potential higher low—an early signal that a short-term uptrend may continue.

Count Cointelegraph reportedThe higher time frame of the RSI indicates trend fatigue, with the indicator making successive lower highs as prices set records.

BTC/USD one hour chart with RSI data. Source: Cointelegraph/TradingView

Stock futures pared gains as the Fed meeting looms

Ahead of the week’s main macroeconomic event, the US Federal Reserve’s decision on interest rate changes, stock futures showed signs of weakness.

Related: BTC Price Price Record Monthly Closer: 5 Things to Know in Bitcoin This Week

S&P 500 futures cooled before the Wall Street open, with riskier assets usually detect pressure at Fed rate meetings.

Pillows also noted that BTC/USD has often placed at a local low on Tuesday, leaving the door open for retest support to continue.

Considering the broader picture, however, Mosaic Assets’ company has little reason to doubt the case of asset risk.

“Evidence of economic growth strengthens the earnings outlook while loose financial conditions are a catalyst for further growth,” it wrote on Sunday in the latest edition of the regular newsletter, “The Market Mosaic. ”

“The prospect of the Fed cutting interest rates against a strong economic backdrop and loose conditions is more fuel for the stock market rally.”

S&P 500 futures one hour chart. Source: Cointelegraph/TradingView

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.