Bitcoin Price Analysis: BTC/USD Consolidating Losses
Bitcoin price continued to trade in a range against the US Dollar, and there was no real move in the BTC/USD pair, which is annoying for traders.
There is a new very tiny range pattern forming on the hourly chart (data feed via Bitstamp) of BTC/USD, which may provide us the next move once broken.
Bitcoin Price Range
The BTC to USD was all range during the past 24 hours, as there was hardly any movement in the price. The price traded in a very tine move of $4. The range support is at $592 and the range resistance is at $596.
The price traded inside the stated range for more than 24 hours, and it’s really amazing to see moves like this. The range can be seen as a channel pattern formation. The channel resistance area also coincides with the 23.6% Fib retracement level of the last drop from the $608 high to $592 low.
Moreover, the 100 hourly simple moving average is slowing moving lower, which is a bearish sign. The BTC bulls need to break the resistance area soon or there is a chance of a downside move.
On the upside, the next resistance can be near the 50% Fib retracement level of the last drop from the $608 high to $592 low. Now, the 100 hourly simple moving average is also around the same fib level. So, it represents a major resistance area on the upside.
On the downside, a break below the channel support area may call for a move towards the $585 level. No doubt, if there is a downside break, it may encourage sellers to take the price further down. The hourly RSI is not able to break the 50 level, which is a bearish sign for the BTC/USD pair.
Chart Source – TradingView.com and data feed by Bitstamp