Bitcoin price on Tuesday appreciated as much as 2.88 percent against the US Dollar.
The BTC/USD is trading at 6326-fiat at the time of this reporting. The pair opened the day forming lower lows towards 6229-fiat. There was already a minor uptrend in place on a bounce back from 6205-fiat from yesterday. However, BTC/USD lacked adequate bullish momentum during the Asian trading session. The sentiment began to improve around the mid-European session, right after Ripple started trending upwards against the USD. As a result, BTC/USD formed higher highs towards 6384-fiat, while eyeing 6400-fiat as its potential upside target. Nevertheless, with the US session still in play, the pair has corrected back while testing 6300-fiat as its next potential support level.
BTC/USD Technical Analysis
BTC/USD is trending below its 50H, 100H and 200H moving averages, while the 50H MA is going below the 200H MA on the hourly charts. Its a death cross in a traditional sense, but one should not take it seriously for its longevity. The pair is trading inside a small ascending triangle as of now, which could influence some attractive intra-triangle price action. A breakout scenario cannot be confirmed up until BTC/USD invalidates its psychological resistance near 6500-fiat – also coinciding with a long towards the triangle resistance. A continuous bearish pattern, however, has more probability purely because of the overall bearish bias sentiment. The RSI and Stochastic indicators are telling the same via their reversal actions from overbought positions.
That said, the ascending triangle support could play a vital role in reversing the trend towards 6500-fiat. A bounce back from 6300-fiat also means the same.
BTC/USD Intraday Analysis
The range, that we are watching today for our intraday strategy today, is defined by 6300-fiat as interim support and 6400-fiat as interim resistance. Our first action is to wait for BTC/USD to break below 6300-fiat and open a path of least support towards triangle support. An ideal short scenario with a stop loss somewhat 2-pips above the entry point.
A reversal from 6300-fiat, on the other hand, will have us switch to intrarange and put a long position towards 6400-fiat. A stop-loss 4-pips below the entry point will define our risks. A breakout scenario above 6400-fiat will have put a similar long position towards 6500-fiat, our primary upside target.
We will also be looking out for a triangle breakout scenario to retest 6600-fiat. Looking south, a breakdown scenario would also mean restest of 6117-fiat, September 8’s bottom.
Featured image from Shutterstock. Charts from TradingView.