Bitcoin is trading relatively flat since yesterday as bulls and bears sweat it out to turn the battle in their favor. However, none of them has been able to make a considerable impact until now. Bitcoin dropped after hitting resistance, and the price took support from the recent low of $226.83.
Bitcoin is presently consolidating near $228.57.
Technical analysis of the 240-minute BTC-USD price chart confirms that the current scenario evenly favors both the bulls and the bears.
Bitcoin Chart Structure – The chart above clearly tells that the cryptocurrency is trapped inside a thin range of $227-231, and may trade within this range for some more time.
Fibonacci Retracements – After dropping from the 50% Fibonacci retracement level of $231, Bitcoin has yet again taken support from the 61.8% retracement level of $227. Buyers can continue to breathe easy until this important support level is not violated.
Moving Average Convergence Divergence – Amid this consolidation, MACD has crossed the Signal Line on the downside, thereby dragging Histogram value into the negative region. MACD currently reads a value of 0.8443 while the Signal Line has a value of 1.0391.
Momentum – The Momentum indicator reading has also dived into the sub-zero region following the weak bullish mood. The latest Momentum value is -0.8200.
Relative Strength Index – The latest RSI value of 56.6549 will provide more comfort to the buyers. However, if the value slips below 50, a cautious approach should be adopted.
Bitcoin is in the consolidation zone now as investors take stock of the situation. The sideways movement may continue for the next 24 hours as there are no foreseeable triggers. Remain patient and wait for convincing signals from the market, such as a breakout, to create fresh trading positions. Buy if the resistance is breached, and sell if the support is violated. Put in place strict loss checks to minimize the risks.