Over the past two days, Bitcoin had been keeping on moving sideways in the same range as before – $3500 to $3600. However, Bitcoin did break out of that range, touching the 50 days daily chart’s moving average line (at $3660 Bitstamp), before reversing.
So far, the bigger picture hasn’t changed since our previous price analysis: a tight range followed by low trading volume.
Looking at the 1-day & 4-hour charts
- As of now, Bitcoin is facing the $3600 resistance level after failing to stay on top that range. As mentioned before, the next target is the daily high, where lies the daily chart’s 50 days moving average line (marked in white, currently around $3660). In case of a breakout, the next targets are the $3700 and $3800 resistance areas.
- From the bear side, the closest support is around $3570 – the ascending trend-line marked in orange (a weak support level), followed by the significant support area at the $3480 – $3500. Below that level, lies the $3400 (weak support) and $3300 support level. This is before retesting the 2018 low at $3120.
- The daily chart’s RSI: Still in the safe zone above the supporting line at 43.
- The 4-hour chart’s RSI has recently crossed over around the overbought area. This could produce a negative correction before a possible positive continuation.
- The weekend doesn’t help much the trading volume, which is very low.
- BitFinex’s open short positions increased to 25.5K BTC of open positions.
BTC/USD BitStamp 1-Hour chart
BTC/USD BitStamp 1-Day chart
Cryptocurrency charts by TradingView. Technical analysis tools by Coinigy.