On Monday, bitcoin price corrected weakly to the downside, summing up the pullback close to 3 percent.
The BTC/USD looked lazy the whole day. The pair earlier corrected from its intraday high near 7340-fiat and continued its fall until hitting today’s low at 7203-fiat during the Asian morning session. The pair recovered later in an attempt to restest 7340-fiat, with its uptrend migrating smoothly from the Asian to the European trading hours. However, it was stopped by the Rising Wedge resistance, as depicted in the chart below. And now, as we begin the US session, BTC/USD is once again attempting a breakout, which looks weak already in near-term.
Bitcoin is nearing its Rising Wedge resistance once again, looking for a breakout. But the selling pressure seems to be strong around that area, as can be seen through the price movements of the past few days. We have broken only once, only to find bears around the upside target around 7400-fiat.
We are already in a pullback scenario. The Stochastic indicator has rejected its overbought area and is now heading south, awaiting a bounce back. The RSI indicator, at the same time, is also looking to reverse its trend after reversing from its overbought sentiment area. We are just supported by the 50 percent Fibonacci retracement level of the last wave from 8311-high to 5872-low, which could be a potential bounce back level for the BTC/USD pair.
At the same time, let’s not forget to mention the moving average crossover between 100H and 200H MA on 4H BitFinex chart; it is a buy signal in medium-term. What could be a possibility is BTC/USD testing 7091-fiat only to bounce back towards the Rising Wedge resistance.
Overall, Bitcoin market is inside a medium-term bullish bias.
The range we are watching for today has 7379-fiat as our interim resistance and 7153-fiat as our interim support. It is a pretty wide range to apply our intrarange strategy; thus, a pullback from the Rising wedge resistance or interim resistance could open a decent short opportunity towards support, and a bounce back from support could open a decent long opportunity towards the Rising Wedge resistance while eyeing the resistance level.
The chances of a breakout are meager according to the current scenario. We will still be prepared for it. That being said, a break above 7379-fiat could have us put a long position towards 7459-fiat. Placing a stop loss four-pips below the entry position will protect our trade from intensified losses.
Looking the other way, a break below 7153-fiat will have us enter a short towards 7091-fiat while eyeing the Rising Wedge channel for a potential bounce back. A stop-loss four-pips above the entry point will define our risk management perspective.
Featured image from Shutterstock. Charts from TradingView.
Last modified (UTC): September 3, 2018 20:50