Bitcoin price continued on Sunday as it had done on Saturday: quiet trade in a $4 range. Today’s price action seems to be coiling up for a larger move.
Time of analysis: 15h00 UTC
From the analysis pages of xbt.social, earlier today:
Another quiet day in the bitcoin price chart with price hugging the 200-hour moving average.
Volume remains low but the additional onset of low volatility within a narrow price range gives the impression that a larger move is building pressure in the chart.
Longer term constraints remain $449 (Bitstamp) and the horizontal resistance zone up to $470.
The price action since Thursday 12th April resembles a base pattern and a Fib extension tool shows its primary target (at 2.618) to fall exactly at the upper resistance level of $470. If price breaks above this level then $480 and $490 are also possible. However, the precedent during 2016 is a high probability of reversal at $470. If the bulls can finally make the break, that will be a defining moment for the bitcoin chart for the year to date.
If price breaks to the downside, then an initial hurdle will be the $449 rising support (grey).
The recommendation remains that traders and investors wait for price to establish above the red resistance zone before committing to buy positions. Similarly, if price breaks below the rising trendline, there may be an opportunity to buy bitcoin at support levels near $425 or $415.
Bitcoin price continues sideways, but a break out of the past few days’ narrow range seems imminent. Although the breakout looks likely to head to the upside, its reach may be capped at $470 resistance. In the event that the market sells off from above $450, it should also breach $449 before a sell trade will sufficient downside space to justify a trade.
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Bitcoin price charts from TradingView.
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