Bitcoin doesn’t like to stay so long at one spot. The more it does remain, the sharper the next move will be.
Let’s start from the macro-level: the last Wednesday saw Bitcoin’s huge price move of about a $1000 gain in just 12 hours – surging from below $6500 straight into the $7400 resistance (the marked MA-100 on the 4-hour chart).
A price drop followed this major move down to $7000, and then a stabilization inside a tight range, like Bitcoin was used to do in the past month.
This time the range is so tight, roughly between $7100 to $7200. The range is holding the price for the past three days.
In the micro-level, we can identify a bullish triangle on the 4-hour timeframe; but anything can change. The only thing we predict is a huge move which is likely to take place in the next 1-2 days, probably as the CME and CBOE start their trading week on Monday morning US time.
Total Market Cap: $191 billion
Bitcoin Market Cap: $130.7 billion
BTC Dominance Index: 68.3%
*Data by CoinGecko
Key Levels to Watch
– Support/Resistance: Looking at the following 4-hour chart, we can see that the first resistance level is the top of the mini bullish triangle, at around $7200.
In case Bitcoin does break-up, then the next resistance level should be the $7300 – $7400 zone, which is combined of the weekly high (from Wednesday), the MA-100 line (marked light green on the 4-hour chart), and a significant resistance area from the recent past.
Further above lies the $7700 resistance, before the good-old $8000 resistance.
From below, in case of Bitcoin breaks the triangle formation (as of now around $7145), then the first support level is at $7000 – $7100, along with the MA-50 line (pink) on the 4-hour chart.
Down below lies $6800 (Fib level 61.8% from the recent Wednesday surge), $6650 (78.6% Fib level), and the $6500 area, which is the double bottom and the lowest price Bitcoin saw since May 2019.
– The RSI Indicator: Over the past three days, the RSI indicator is also ‘stuck’ at the 44-45 resistance level. This is a 2-month-old resistance. A decision here will be made whether the RSI will overcome the resistance or get rejected back down.
Despite the neutral RSI, the Stochastic RSI oscillator is about to make a bearish crossover at the overbought territory. This supports a price drop. However, anything can still be changed.
– Trading volume: The trading volume is also anticipating the huge move, as the volume’s declining over the past four days.
BTC/USD BitStamp 4-Hour Chart
BTC/USD BitStamp 1-Day Chart
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Cryptocurrency charts by TradingView.