Bitcoin Price Analysis: BTC/USD Consolidating Losses
Bitcoin price after yesterday’s downside move against the US Dollar recently started trading in a tiny range, and it looks like the BTC/USD pair is consolidating gains.
Yesterday, we saw a major break of a range pattern on the hourly chart (data feed via Bitstamp) of BTC/USD, and now the price seems to be forming a similar pattern on the same chart.
Bitcoin Price Range
The BTC to USD declined yesterday, and remained in a negative territory for some time. It later found support near $592 and started consolidating losses. There were a couple of attempts to break the stated level, but the sellers failed to break it.
At the same time, the BTC bulls attempted to take the price higher, but failed. They are struggling to clear the 23.6% Fib retracement level of the last drop from the $608 high to $592 low. The stated fib level is acting as a major resistance zone for BTC/USD and preventing a recovery.
So, there is a chance that the price may continue to trade in a range before the bulls attempt another upside move. If they manage to take the price higher, then the most important resistance as stated yesterday is near the $600 level.
The highlighted resistance holds a lot of value, as it is positioned with the 50% Fib retracement level of the last drop from the $608 high to $592 low. Not to forget the 100 hourly simple moving average. It is also aligned just above the stated fib level.
So, we can say that there are many resistance levels on the upside waiting for the pair to present offers. The hourly RSI is recovering from the oversold readings, but continue to signal more declines in the BTC/USD pair.
Chart Source – TradingView.com and data feed by Bitstamp