The Bitcoin Zombie Rises Again

It’s Halloween season, and bitcoin is like the horror movie monster that just won’t die. Every time the bitcoin futures contract looked as if it was being knocked down below the 18,650 level during the past few months, it displayed remarkable resilience and would simply rise back up like a zombie.

Recently, bitcoin showed some behavior that looked promising for the bulls. Price was trading in a descending triangle-type pattern, with a trendline going down from the highs starting on May 9 with horizontal support at the previously mentioned 18,650 level. The contract is now up about 14% off the yearly intraday lows reached on Oct. 13, breaking out of this pattern and pushing above the 21-day Exponential Moving Average, which was a near-term point of resistance. The Relative Strength Index (also known as RSI, which measures speed and momentum of price changes) broke out of downward trendline and pushed above the midline at 50, both of which are typically interpreted as bullish.

But the /BTC contract is stalling out near the 63-day EMA this morning around 20,900. Look for resistance first at this point, and beyond that at the old high close near 22,430. For support, keep an eye on the 21-day EMA near 19,700.

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