Bitcoin price analysis: When will this sluggish sideways mundane movement break?
|- Technical indicators point towards a bullish break in the near-term.
- Volatility in Bitcoin price and the crypto market has gone down considerably.
Bitcoin recovered from the lows near $6,000 last week only to wind up in a halt above $6,400. The trading since the brief surge on Monday has been sluggish and mundane. This sideways movement reflects the general trend in the market accept for selected altcoins like Ravencoin (RVN) and Odyssey (OCN), which continue to fly the bullish flag high in the crypto space. Although the momentum seems to have died down, investors are looking forward to a breakout. Besides the indicators are sending signals of a bullish breakout in the near-term.
Meanwhile, Bitcoin is trading at $6,440 with the medium-term descending trendline limiting gains. The $6,450 - $6,600 range is the major resistance zone to the upside but $6,800 is the ultimate resistance in the near-term. The relative strength index (RSI) has been pivotal around the 50% mark following the retreat from the overbought territory on Monday this week. The MACD, on the other hand, continues to range at 0.0 showing that the bulls have the say, although they lack the power to push for gains.
The 100 SMA has crossed above the longer term 200 SMA showing that the trend will continue in the favor of the bulls. The current consolidation is approaching a breakout in the near-term. Bitcoin volatility has gone down in the past few weeks accept for the sudden movements on Thursday last week and Monday this week.
In case the bears increase their grip on the market, Bitcoin will find support at $6,400. Moreover, the next support targets at $6,200 and $6,000 will very essential in stopping the declines.
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