It’s Consolidation Time for Bitcoin as investors sit out to conduct a valuation check on the cryptocurrency. In the past 24 hours, Bitcoin has barely budged from yesterday’s level, prolonging its sideways movement.
Bitcoin is now trading at $228.98. I am expecting Bitcoin to stage a breakout by the end of this week!
Technically, things are pretty comparable to yesterday’s situation. Today’s 240-minute BTC/USD price chart fails to provide clues regarding the future price direction.
Bitcoin Chart Structure – From the first look, today’s price chart seems like a mirror image of yesterday’s chart. There hasn’t been much of an action and the price is trapped inside the thin trading zone of $227-231.
Moving Average Convergence Divergence – Even though MACD and Signal Line maintain their positive standings, the Histogram is still struggling to rise above the 0 level. MACD, with a value of 0.7360, is below the Signal Line’s value of 0.8533. The latest Histogram value is negative at 0.1173.
Momentum – Amid this consolidation, the Momentum indicator reflects negative expectations surrounding the cryptocurrency. The latest value of -0.6700 indicates that the underlying momentum is turning in favor of the sellers.
Relative Strength Index – The RSI indicator reports a reading of 57.2773, bettering the previous observation of 56.6549. This should provide a sigh of relief to the buyers who were concerned about the weakening momentum.
It seems that Bitcoin has spent significant time trading sideways, and the cryptocurrency may give a breakout by the end of this week. Market participants must stay alert and initiate trading positions following the stop-losses. If the support of $227 is breached (on a closing basis), exit long positions and create fresh shorts by placing a stop-loss above $228. Similarly, if the resistance of $231 is taken out, cover the short positions and take long positions by maintain a loss check below $230. Volume activity should be carefully watched to call a fake breakout!