The bitcoin price on Friday gained momentum towards $6,500-area, only to find itself unable to puncture through it.
The BTC/USD slipped towards 6236-fiat on Bitfinex yesterday but regained much of its value during the early Asian trading session today. The upside correction extended as far as 6558-fiat, but fell short of bullish sentiment and pushed the pair back below 6500-fiat. The pullback has been marginal and is now finding support at 6450-fiat.
In the medium-term, the BTC/USD is consolidating sideways, with two significant levels — 5861-fiat and 6550-fiat — guarding the sentiment against each other. In a longer-term, we are inside a fat descending triangle, with an established bottom around 5800-fiat. What’s important now is to hold your medium-term longs above 7000-fiat, for the level could potentially reject an upside, and trigger a fallout towards a new bottom — below 5861-fiat.
As for us, we are strictly playing intraday and churning out small profits from the current price fluctuations. And it seems there are many like us who are expecting a short squeeze to kickstart a bull run. We’ll get to it after discussing the technical aspects of the BTC/USD market.
BTC/USD Technical Analysis
The BTC/USD pair has a prevailing support provided by the ascending trendline depicted in black. The pair is already trending above its 100 and 200H moving average curves, with 200H MA hinting a crossover below 100H MA. Traditionally, this could invite a potential selling sentiment that could bring the pair below the ascending trend support. On the other hand, the RSI and Stochastic Oscillator on the hourly BitFinex chart are both in buying area.
Overall, we are in a near-term bullish bias.
BTC/USD Intraday Analysis
We have just taken out a small profit from our yesterday’s long position towards 6500-fiat. We now expect the price to retest the level once again before deciding on to our first intraday position. That being said, 6500-fiat is the interim resistance level we are watching today. To the south, 6450-fiat is providing a decent interim support for now.
So, if BTC/USD manages to break above resistance, we’ll enter a long position towards 6650-fiat, our weekly high, while placing stop loss two-pips below the entry point. In case the price bounces back, we will wait for a breakdown below 6450-fiat before entering a short towards the current ascending channel support. A further break, and we’ll open a similar entry towards 6255-fit, our primary downside target. A stop loss at three-pips above the entry point will define our risk management strategy.
Featured Image from Shutterstock
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Author: Yashu Gola