Bitcoin Price Analysis: BTC feels like its in no mans land at the moment
- Bitcoin has pushed over 8% higher after the fall over the weekend as sentiment bounces.
- The pair is now stuck between two important levels and a firm breakout is needed.
BTC/USD 1-hour chart
Bitcoin fell around 9% Friday through till Sunday and the price has bounced back somewhat at the start of the trading week. The market has been consolidating for a while and seems to be lacking any firm direction at the moment. On the hourly chart below the price seems to be stuck between the black resistance (6,983) and the red support (5,750). A strong breakout could be on the cards but who knows when it will occur.
Looking closer at the chart now, the price is trading right between the 55 and 200 period moving averages. The RSI has just moved into higher territory but the waves have made a lower high. This is called a failure swing and can sometimes lead to more weakness. If the red support level breaks then you could expect a move to lower levels but at the moment despite the lower high the uptrend remains intact on this timeframe.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
