Technical Analysis – Bitcoin flattens after bouncing off 1-week lows; range-trading may continue
October 5, 2018 9:26 am
BTCUSD has somewhat flattened after its rebound off the one-week low of 6,363 reached on Wednesday, with the MACD and the RSI hinting that consolidation might continue in the short-term as the former holds tight around zero and its red signal line, while the latter hovers just above its 50 neutral level.
If the market manages to turn higher, the price may find immediate resistance around 6,564 as it did in the past few sessions. Above that mark, the price could increase until it touches 6,633, an area marked by the inside swings low on September 28 and September 21-24, while steeper increases would also try to overcome the previous two peaks of 6,739 and 6,758. Should the bulls push prices above the latter, traders could expect further gains in the market.
On the flip side, a reversal to the downside and below the 20-period moving average currently at 6,476 would potentially approach the area between 6,444 and 6,363 formed by the lows on October 1 and October 4 respectively, while an extension beneath the bottom of this zone, may see the bears testing the area between 6,300 and 6,220. Yet, greater attention could be gathered around 6,067 as any significant drop below that trough which is the lowest since August 15 would bring the bearish outlook back into play.
BTCUSD has somewhat flattened after its rebound off the one-week low of 6,363 reached on Wednesday, with the MACD and the RSI hinting that consolidation might continue in the short-term as the former holds tight around zero and its red signal line, while the latter hovers just above its 50 neutral level.
If the market manages to turn higher, the price may find immediate resistance around 6,564 as it did in the past few sessions. Above that mark, the price could increase until it touches 6,633, an area marked by the inside swings low on September 28 and September 21-24, while steeper increases would also try to overcome the previous two peaks of 6,739 and 6,758. Should the bulls push prices above the latter, traders could expect further gains in the market.
On the flip side, a reversal to the downside and below the 20-period moving average currently at 6,476 would potentially approach the area between 6,444 and 6,363 formed by the lows on October 1 and October 4 respectively, while an extension beneath the bottom of this zone, may see the bears testing the area between 6,300 and 6,220. Yet, greater attention could be gathered around 6,067 as any significant drop below that trough which is the lowest since August 15 would bring the bearish outlook back into play.
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