Bitcoin price today remained in a bias-conflict, neither rising nor falling much.
The BTC/USD started Wednesday just shy of 7010-fiat and managed to go as north as 7137-fiat by the end of Asian, and the beginning of European session. The lackluster volume didn’t offer many opportunities for the day traders, but it established that price could attempt a solid breakout from after invalidating its comprehensive narrow range. To explain further, BTC/USD is still climbing inside the ascending channel (please refer to the chart below) while testing its upper trendline as resistance. The pair could attempt a minor pullback before continuing to its current upside rally, which means a break above the channel resistance.
An extended pullback could also change the dynamics altogether, bringing price towards the current channel support in medium-term. However, there is considerably strong support lurking near 6872-fiat that could fuel a steady bounce back above 7000-fiat.
With ascending channel now discussed, and the bias conflict of intraday price action noticed, there is not much to add about the potential sentiment for the rest of this Wednesday. BTC/USD in near-term is already in a bullish bias, with it staying above its 200H and 100H moving average. The reducing gap between the two MAs, however, point to a potential correction. Once a crossover took place, with 100H moving above the long-term 200H one, it would signal a resumed uptrend.
The RSI and Stochastic indicators are inside strong buying sentiment areas. With both of them heading down at the time of this writing, we can expect some selling action. Though, the extent of it cannot be realized at this moment.
The negligible price action today didn’t allow us to close our long position towards 7184-fiat. As it remains open, there is nothing we can do but wait for BTC/USD to come out of its bias-conflict. It is the most boring time for a day trader, indeed.
Nevertheless, our levels for today are the almost same, defined by 7184-fiat as interim resistance and 6872-fiat as interim support. We are already long towards 7184-fiat with a stop loss placed near 6945-fiat. The price correction at this moment is telling us that we’ll have to exit on a small loss. Should it happen, we’ll first wait for the price to test 6872-fiat before entering our next trade. In case of a bounce back from support – which is likely – we’ll open a long towards 7150-fiat to stay on the safe side. In case of a break below support, we’ll be short towards 6650-fiat, our downside target.
A break above 7184-fiat, meanwhile, will allow us to go long towards 7490-fiat, our next upside target while placing our stop loss two-pips below the entry point.
Featured image from Shutterstock. Charts from TradingView.
Last modified: May 20, 2020 6:03 PM UTC