Bitcoin on Tuesday remained calmer compared to the action noted at the beginning of this week.
The bitcoin-to-dollar exchange rate moved sideways above its newfound support at 6212-fiat as volume dipped once again. The pair is now more than a percent down from its yesterday’s high at 6288-fiat, trading at 6211-fiat at this moment. The sideways action is not yielding any intraday opportunity but is further intensifying the current bearish bias.
There is a lack of upside correction sentiment in the bitcoin market. One could expect the BTC/USD pair to extend its losses further owing to macroeconomic factors. The US Dollar Index (DXY) is strengthening as each day passes. It has received more bullish signals from the White House after the US President Dollar Trump forecast a “great deal” with China on trade. At the same time, the president threatened China with billions of dollars worth of new tariffs if the deal doesn’t go through.
The comment from Trump shook the stock market which was already inside a downward trajectory. The DJI, the Nasdaq, and the S&P each experienced an extended sell-off action. As a result, the dollar has become stronger than ever, with DXY now targeting fresh highs.
BTC/USD Technical Analysis
The BTC/USD now trades below its 100 and 200-hour moving averages, bound inside a medium-term triangle formation indicated in the chart above. The pair is likely to retest its previous low near 6212-fiat before setting up for an extended downside course towards the triangle support. One could expect a pullback action, but the likelihood is a test towards the next downside target at 6032-fiat, also the bottom area.
The momentum indicator RSI is inside an oversold territory and is expecting a pullback as well. The Stochastic Oscillator is also trending inside a region with strong selling sentiment.
BTC/USD Intraday Analysis
The lower volatility has disabled our intrarange action trades for the day. We are expecting a minor upside correction towards 6329-fiat, which could yield small profits off our long position towards the level. A high-volume green candle would allow us to enter this position while maintaining a stop loss order 2-pips below the entry point.
Conversely, a high-volume red candle formation will have us place a short position towards 6212-fiat, our previous low. A breakdown action will open a similar short opportunity towards the triangle support. A stop-loss order 3-pips above the entry point will define our risk management perspective in both positions.
Featured Image from Shutterstock. Charts from TradingView.