Bitcoin Buyers Defend the 50-day MA

Bitcoin’s performance since the start of the day supports our conclusion that buying appetite remains strong. Under pressure from selling in the equity markets, the leading cryptocurrency slipped to $81K, triggering a heavy layer of stop-loss orders and once again touching the 50-day moving average. In this region, as on Thursday last week, BTC found solid demand and quickly rebounded to $83.7K, demonstrating just how easily it can rise after long positions have been liquidated.

If this was indeed a healthy correction, Bitcoin could rise quite quickly to $85K or retest $87K. It is also interesting to note that this sharp reversal to the upside could herald a strengthening of risk appetite on a more global scale. However, this optimism needs confirmation and could quickly fade without external validation.