Bitcoin price analysis: BTC/USD stuck in a range, Bloomberg expects it will be broken to the downside
|- Bitcoin is rangebound during early Asian hours on Friday.
- Bloomberg experts believe, the crypto market risks are tilted to the downside.
Bitcoin is changing hands at $6,534, unchanged both on day-on-day basis and since the beginning of Friday. The price has been sitting in a narrow range for the past week, building a strong momentum for a forceful breakthrough.
What’s going on
While Bitcoin is sitting in a narrow range, experts and analysts are trying to predict where the market has hit the bottom or there is more pain in store ahead for crypto bulls. Considering that Bitcoin has been trading in the narrowest 20-week range in two weeks the breakout seems imminent, and this time the risks are tilted to the downside, Blomberg research shows.
The experts note that crypto market was supported high trading volumes and volatility measures, but now they are no longer here, which adds gloomy colors to the picture.
“The receding cryptocurrency tide is unlikely to reverse soon, and a proliferation of pundits calling for a bottom may need to diminish, in our view. The extent of the frenzy and primary indicators trending quite unfavorably portend an enduring lack-of-faith period before reaching bottom. Bitcoin trading within its most-confined 20-week range in two years indicates a breakout soon, while risks appear tilted toward resuming the 2018 trend.”
Bitcoin’s technical picture
BTC/USD is trading off the Asian high of $6,586, as fresh selling interest located on approach to critical $6,600 won’t let it higher. The price is supported by SMA100 and SMA50 (1-hour) at $6,529 and $6,500 respectively. Once this area is cleared, the sell-off may be extended towards the vital support at $6,400.
On the upside, the resistance created by SMA200 (1-hour) at $6,550 separates the bulls from their ultimate short-term goal at $6,600. This hurdle needs to be taken out to cement the recovery and open the way to $7,000.
BTC/USD, 1-hour chart
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