Bitcoin price on Friday made no significant corrections from its intraday low near $6,302. The BTC/USD over the course of past 24 hours has done a raise-and-erase act, signaling a sideways sentiment. At the beginning of the Asian session, the pair had noted a weak…
Bitcoin price on Friday made no significant corrections from its intraday low near $6,302.
The BTC/USD over the course of past 24 hours has done a raise-and-erase act, signaling a sideways sentiment. At the beginning of the Asian session, the pair had noted a weak bull correction attempt, so that it established an intraday high around 6540-fiat. The bulls got cold feet around 6500-area and sellers started exiting their long positions – perhaps on small intraday gains – to push Bitcoin back towards the previous low. That was the European session.
Not to mention, the BTC/USD is already inside a giant descending triangle in contrast to reports that Goldman Sachs’ plans to delay their crypto trading desk pushed the price down the cliff – a story which the CEO later confirmed was fake. Not that it concerns our analysis, but it surely allows us to post an ancient and famous cartoon from the Wall Street.
The question is: who will be the one to scream a big BUY and push BTC/USD back towards the overall bullish path. We don’t have an answer. So, let’s just focus on what matters the most, the technical indicators and intraday positions.
The BTC/USD pair now trend sideways within a fairly separated trading range. The pair is below its key short-term and long-term moving averages. The 50H MA in pink is particularly hinting a crossover below the 100H MA in blue, predicting a bearish climax in the near-term. Should that happen, a break below 6300-6302 area could prove unavoidable. Furthermore, an extended downside could also push the 50H MA below the 200H MA – a death cross – that could mean a rerun towards the Bitcoin bottom around 5860-fiat.
There is a historical pattern from early August, highlighted with a pink ellipse, that looks similar to the market condition at present. So, at best, we are looking at a run towards the nearest bottom and then attempt a bounce back towards the upper trendline of our descending triangle (see in this analysis from yesterday).
The range we are watching like yesterday is defined by 6500-fiat acting as our psychological resistance and 6302 as our interim support. We were able to squeeze off some small profits from our long position towards 6500-fiat on a bounce back from 6375-fiat. We have already placed another long towards the resistance level from the recent bounce-back point near 6325-fiat. So obviously, our first priority would be to meet the target, take out losses and wait for a further action to signal our future positions.
That said, on a pullback from support, we will enter a short towards 6375-fiat while keeping our stop loss a two-pips above the entry position. Similarly, a breakout above 6500-6510 area would have us put a long position towards 6592-fiat. It is a little risky position because the latest upside attempts have been rejected around 6540-fiat, so anybody mirroring our trade would be requested to put a short loss only two-three-pips below the entry point.
Meanwhile, let’s wait for somebody to scream ‘BUY’. Trade safely!
Featured image from Shutterstock. Charts from TradingView.
Last modified: January 24, 2020 11:00 PM UTC