BTC/USD technical analysis: Bitcoin is looking for support and there is a level coming up
- Bitcoin is weaker today after a good run over the last few days.
- There is a key level coming up on the 4-hour chart which could provide some support.
- In this area of selling pressure the volume has been light and during the last few bull waves decent volume was noted.
Bitcoin is looking for support on the 4-hour chart above and it might just find it at around 10,275. This intraday level of support has been used on various occasions but most notably on July 15th.
The market also sometimes front runs these levels so I wouldn't be surprised if we get some bids slightly ahead of the touted level. Another level that could be significant is the 10k psychological level. If the market manages to sell off it would be interesting to see how bulls react down there.
Another important fact about the 10,275 zone is the low volume area noted by the volume profile indicator on the left-hand side of the chart. These LVN (low volume nodes) often act as great support and resistance points on the intraday timeframes.
On the RSI indicator, I have put a little arrow to show that price is moving away from the overbought zone which could suggest the bulls ran out of steam.
Price action has been subdued today after a strong run in recent sessions. It seems there may be some profit-taking or that the market just needs a breather before another push to higher levels.
On the hourly chart below the BTC price has stalled at the 23.6% Fibonacci level but that does not mean BTC/USD is out of the woods just yet, as it could easily break lower. In terms of the Fibonacci levels on the hourly the 50% seems the strongest at 10,055.
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.
