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BTC/USD outlook: Bitcoin remains within extended range

BTC/USD

Bitcoin edged lower on Monday but remains within the longer range which extends into seventh consecutive day.
Near-term action remains sideways and looking for stronger direction signals, as daily studies are mixed (fading positive momentum / MA’s in bullish setup), with bullish but overbought weekly studies, adding to unclear near-term picture.

Last week’s monthly close above $70000 level could be a positive signal, however, bulls need to sustain gains above this level to confirm signal.

Traders’ sentiment is also mixed, with two opposite views that correction from new record high is over and fresh acceleration higher expected and that deeper pullback is still to be seen.

Firmer dollar on the latest soft US inflation data, which adds to expectations for Fed’s rate cut in June, could weigh on Bitcoin.

Initial support lays at $69055 (rising 10DMA) guarding more significant range floor, reinforced by 20DMA ($68250), loss of which would risk deeper drop.

Conversely, sustained break above $70000 to keep bias with bulls, though lift above range top ($71700) will be required to confirm bullish continuation.

Res: 70000; 70735; 71000 72406.
Sup: 69055; 68250; 67813; 66216.

CHART

Author

Slobodan Drvenica

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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