Bitcoin Price Key Highlights
- Bitcoin’a price came from a strong rally then moved sideways in a tight consolidation pattern, indicating that bulls are taking a break before regaining momentum.
- Price is stuck inside a flag pattern for now and—given how the previous rally has been pretty strong and sustained—another break higher might be seen.
Bitcoin’s price could resume its climb once it is able to break above the bullish flag pattern on its short-term time frame.
Where To Next?
At the moment, the major psychological resistance at $400 holding really well, as several take-profit orders were probably triggered there. However, bulls are pushing higher, as Bitcoin’s price has made higher lows.
If the resistance gives way, Bitcoin prices could have around $40 in gains to go, as this is the same height as the previous surge. However, a downside break could trigger a pullback to the moving averages.
Speaking of moving averages, the 100 SMA is above the 200 SMA, indicating that the uptrend is likely to carry on. In addition, the 100 SMA is moving farther away from the longer-term SMA, which suggests that the uptrend is getting stronger.
The stochastic oscillator, on the other hand, is pointing down, so bearish pressure could be in play. RSI is on middle ground, barely offering any strong directional clues at the moment.
The average directional index is treading carefully below the 50 level, which means that ranging market conditions are present. In that case, Bitcoin’s price could keep moving sideways inside its bullish flag pattern for a bit more.
If buyers need a bit more support to carry on with the uptrend, a downside break could still yield a retracement opportunity, possibly around the dynamic support at the 100 SMA ($390) or the 200 SMA ($375).
Intraday support level – $390
Intraday resistance level – $400
Technical Indicators Settings:
- 100 SMA and 200 SMA
- Stochastic (8, 3, 3)
- RSI (14)
- ADX (14, 14)
Charts from Bitstamp, courtesy of TradingView