Bitcoin had been trading in a narrow range after hitting a low of $210 near the end of the first half of this month. The market participants were hoping for some volatile price action (as is the nature of this digital currency) but were instead made witness to sideways consolidation. However, on a positive note, the consolidation looks set to end this week and a major breakout may happen very soon.
Each Bitcoin is currently worth $226.10.
An analysis of the 240-minute BTC/USD price chart above reveals that, even though the bulls have an advantage, that might not prove sufficient to tame the bears.
Chart Structure – The chart above presents the narrow trading range of the cryptocurrency. As is clearly visible, Bitcoin is at the resistance level now and traders who bought at lower levels may consider booking partial profits. The support lies near the previous lows of $220.
Moving Average Convergence Divergence – The MACD indicator also fails to provide any comfort to the bulls; the latest MACD value is -0.1414, the Signal Line value is -0.4592 and the Histogram value is 0.3178.
Momentum – The Momentum indicator is, however, in favor of the buyers with a value of 2.7000.
Relative Strength Index – Along the lines of the Momentum indicator, the RSI also supports bullish bias with a value of 54.7118. But the strength indicator is also close to its near-term peaks.
While I end this analysis, it must be advised that positions be trimmed down as the price range narrows, and fresh trades should be initiated only after a breakout to avoid unnecessary losses. The current scenario may be slightly supportive of buyers but, I believe that Bitcoin will resume its downtrend and revisit $200-210 going ahead. I am expecting the floor of $220-222 to crack in the next 48-72 hours.