Bitcoin overview: the range is getting too claustrophobic
|BTC/USD is moving within a narrowing range
The intraday RSI implies more sell-off is coming
Bitcoin (BTC) has been confined to a narrow range lately as the cryptocurrency market volatility receded amid low trading activity. The first digital coin is changing hands at $3,856 at the time of writing. The price has barely moved within recent 24 hours, sandwiched between strong resistance and support levels.
Bitcoin’s intraday technical picture
On the intraday level, BTC/USD is moving within a tight range limited by $3,880 on the upside and $3,840 on the downside. The price attempted to break the lower boundary on Wednesday, but the sell-off proved to be short-lived.
A cluster of SMA100 and SMA200 (1-hour) around $3,860 creates a local resistance that separates us from the upper boundary of the above-said range, which is in turn followed by $3,900. A sustainable move higher will open up the way to $4,000-$4,200 area, though it looks unlikely as the intraday RSI has reversed downward.
On the downside, the first local support is created by SMA50 (1-hour) at $3,850. Once it is out of the way, the sell-off may continue towards $3,840 and $3,800 with this week low at $3,796.
BTC/USD, 1-hour chart
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