Bitcoin Eyes $83K as Momentum Continues to Build
Bitcoin's price action is being watched closely as it approaches $83K after clearing its 200-day simple moving average (SMA). The cryptocurrency has gained around 25% since breaking out of a narrow range near $63,000 on August 19. According to data from crypto.news, Bitcoin's price was trading at approximately $79,473 at the time of writing.
The daily chart shows that Bitcoin is trading above its four tracked simple moving averages, which supports the broader recovery. However, the moving averages have not yet produced a confirmed bullish golden cross, and traders are watching whether the separation expands or reverses. The 20-day SMA stood at $69,711, while the 200-day SMA was near $69,257.
The Treasury's announcement that it would double the maximum size of long-end liquidity-support buybacks has supported Bitcoin's price action. This, combined with renewed demand through U.S. investment products and improving expectations for crypto legislation, has contributed to the rally. However, technical indicators warn that momentum may be stretched, with the daily relative strength index (RSI) reaching 81.14, well above the conventional overbought threshold of 70.
Bitcoin's trend remains bullish despite weakening momentum on the 4-hour chart. The 4-hour Supertrend indicator is still above $76,687, which preserves the sequence of higher lows established after the breakout. However, the moving average convergence divergence (MACD) indicator presents a more cautious picture, with a bearish crossover suggesting that the rally has lost some short-term force.