Bitcoin price analysis: BTC/USD looking for an opportunity to escape the "Pennant"
|- BTC/USD is trading in a narrow range after sharp movements at the end of the week.
- The critical upside barrier is seen at $6,800.
Bitcoin is changing hands at $6,700 at the time o writing, off Saturday's high at $6,822. The digital coin No. 1 has barely changed in recent 24 hours but managed to gain over 3% in seven days time. Low volatility after strong movements at the end of the previous week is likely to be the dominant conditions during Asian hours; however, further developments will be defined by the sentiments of European players that will join the game later.
Bitcoin's technical picture
From the technical point of view, a "pennant" pattern on a 4-hour chart might signal that the upside rend will continue after a short period of consolidation. Basically, we need a breakthrough above $6,750-70 area, which encompasses both the upper line of the above-said pennant and 50.0% Fibo retracement from the downside movement from September 4 peak. This area has been serving as a string resistance since Friday. A sustainable move higher will signal that the bullish trend has resumed.
On the downside, once below $6,700 handle, the coin may continue sliding down towards $6,670-50 (the lower line of the pennant and SMA200 - 4hour chart) and to the crucial next hurdle at $6,600, guarded by SMA5 - daily and 38.2% Fibo retracement, followed by DMA50 at $6,575. This development will signal that the bearish momentum is gaining traction.
Tactical strategy compensates for the lack of fundamentals
Meanwhile, a BTC futures trader Jim Iurio forecasted that BTC would trade above $6,800 soon because the coin managed to hold $6,000 support.
“$6,000 is a big deal. I don’t know why it’s a big deal, but if you look at the charts, it’s clearly something. Every time it gets there, it gets rejected again. If it trades at $6460, about $60 above where it is now, we do this technique a lot called the stop in. We wait for a little bit of strength and try to jump in at the right time,” he said in the interview with CNBC.
He explained that there are no fundamentals relevant for the cryptocurrency markets that can be used to price analysis, which makes it vital to rely on market tactics, based on looking for tactical levels and waiting for follow-throughs.
BTC/USD, 4-hour chart
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