Bitcoin Price Analysis: BTC/USD To Trade In Range?
Bitcoin price managed to move a few points higher vs the US Dollar yesterday, but found sellers near the 100 hourly simple moving average.
Looking at the hourly chart (data feed via Bitstamp) of BTC/USD, there is an ascending channel pattern forming, which may act as a catalyst for the next move.
Bitcoin price to break higher?
BTC looks like under a lot of pressure vs the US dollar, as it failed to break the 100 hourly simple moving average and moved down. BTC was also seen struggling against ETH, as it weakened a lot.
Currently, there is an ascending channel pattern forming on the hourly chart (data feed via Bitstamp) of BTC/USD, which may provide us the next break. The price is currently trading near the channel support area, and if the BTC bulls fail to hold it, then a downside reaction is likely.
As mentioned, the price recently failed near 100 SMA, which clearly suggests that the BTC bulls lack momentum. As long as the price is below the stated MA, there are chances of it moving down in the short term.
On the upside, the 38.2% Fib retracement level of the last drop from the $458 high to $451 low can be seen as an initial hurdle. However, the 100 hourly SMA and the 61.8% Fib retracement level of the same wave holds the key for more gains.
Only if the price settles above the 100 hourly SMA, there lies a possibility of a move towards the $460 level. The hourly RSI is below the 50 level, pointing towards the fact that the BTC bears are in control at present.
One may consider selling with a break of the channel support area with a tight stop of no more than a point.
Chart Source – TradingView.com and data feed by Bitstamp