BTC/USD tests 200DMA with trend on the lineBitcoin / U.S. DollarFOREXCOM:BTCUSDFOREXcomBTC/USD continues to bounce strongly from $99,060 support, adding to the sense we may be nearing a bullish turning point if sellers parked above the 200-day moving average are eventually overrun. Should we see a break and hold above the 200DMA, longs could be established above the level with a stop placed beneath for protection, targeting $107,500 which acted as support earlier this year. It may now flip to resistance. A break of $107,500 would put the downtrend from the record highs in sight, along with the 50DMA. The former sits around $110,500 and interests me not only because of the falling wedge pattern the price finds itself coiling in but also the reliability prior bullish breakouts from falling wedge patterns have seen in recent times to play out in full. While RSI (14) and MACD remain firmly entrenched in bearish territory, which favour short setups overall, there’s tentative signs that downside strength may be starting to wane with a higher low set in the former. It’s not a definitive signal and has yet to be confirmed by MACD, but it provides a warning that the tide may be slowly starting to turn. Of course, should BTC/USD remain capped beneath the 200DMA, the option remains to sell beneath the level with a stop above, targeting another test of support below $100,000. The case for this setup would be strengthened should we see weakness in tech stocks on Monday with BTC/USD demonstrating a strengthening positive relationship with Nasdaq 100 futures over the past fortnight, sitting with a correlation coefficient of just under 0.8. Good luck! DS