Bitcoin Holds Trend Line, Key Level as Golden Cross Appears

Feb 19, 2020

Bitcoin just had its biggest drop since November, down 4.5 percent on February 15. It was a healthy pullback after a big rally, and it did little to break the cryptocurrency's recent uptrend. If anything, it confirmed most of the bullish bias.

Point 1: BTCUSD held a key price level around $9,500. That was a peak last October-November and again in late January. Old resistance becomes support. Classic uptrend behavior.

Point 2: BTCUSD briefly tested below a rising trendline that began in early 2020, only to bounce back above it. The bears tried to knock it lower, but failed. Another common bullish event.

Point 3: As BTCUSD consolidated in those areas, its 50-day simple moving average (SMA) rose above its 200-day SMA. That "Golden Cross" chart pattern is often viewed as an indication of longer-term trend turning higher.