Bitcoin’s Chart Just Improved. Here's What Traders Need to Watch Now.

There was no shortage of explanations for Wednesday’s strength in crypto.

Some pointed to President Trump’s comments on Truth Social. He accused U.S. banks of undermining pro-crypto legislation and pushed Congress to move quickly on market-structure rules, including the CLARITY Act, to build on the earlier GENIUS Act.

Others claimed Bitcoin may finally be showing the crisis-hedge qualities believers have been promising for months.

Maybe. Maybe not.

For traders, the reason doesn’t matter. The chart does.

On Wednesday, Bitcoin finally reclaimed its 8-day and 21-day exponential moving averages (EMA) and broke out of a four-week consolidation.

That improves the setup, but it’s far too early to sound the all clear.

The 8-day EMA will likely cross above the 21-day soon, which is constructive. The bigger issue is the declining 50-day simple moving average (SMA) sitting overhead. That level often trips up rebounds in a weak trend.

Here’s the good news. Traders can still work the long side if they stay nimble.

My approach after Wednesday’s rally is straightforward. As long as price is above the 8-day and 21-day EMA, and as the 8-day crosses above the 21-day EMA, I’m willing to buy pullbacks and sell into strength. However, I don’t want to buy strength or breakouts, especially into or immediately around the 50-day SMA.

One obvious level to watch is 70,000, which marks the late-February high.

Here’s the catch. If you’re a scalper, I wouldn’t get attached to a position on weakness. As price settles back under the two short-term EMAs and the 8-day dips back under the 21-day, I’d look for another test of the low-60K range.

The bottom line is BTC still has a lot of work to do to transition into a bullish chart across multiple timeframes, but Wednesday’s rally was a nice first step.

At the time of publication, Byrne was long IBIT in long-term accounts.