Since our previous price analysis, Bitcoin has been moving sideways, in a symmetric triangle formation.
Typically to weekends, the trading volume is very low, so as the action in the Bitcoin price. Unlike Bitcoin, some of the altcoins had shown decent gains over the past day.
Looking at the 1-day & 4-hour charts
- As mentioned, Bitcoin is moving sideways building a triangle pattern. The formation is soon to be decided, maybe in the next 24 – 48 hours.
- The triangle should be decided along with the interaction with the significant resistance level of the 50-days moving average line from the daily chart (marked in white).
- A breakout could turn out to be a very bullish move and send Bitcoin to retest next resistance levels around the $4050 – $4200 area. The following resistance level is $4400.
- From the bear side, Bitcoin is getting supported by the 50 days moving average (4-hour chart, marked in purple) and the $3800 level along with the triangle’s ascending trend-line. The next support level is $3700 (along with MA-200 – marked in green) and $3600 (prior low).
- As mentioned above, not a lot of action due to the low trading volume, following the weekend and the holidays.
- Something worth attention: BitFinex’s open short positions, decreased to their lowest point since November – 29.6K BTC, while BTC long positions showed a nice increase. Do they know something?
BTC/USD BitStamp 4-Hour chart
BTC/USD BitStamp 1-Day chart
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Cryptocurrency charts by TradingView.