The bitcoin-to-dollar exchange rate on Thursday dropped a little over 1 percent from its intraday high towards 6377-fiat.
Currently, the pair is trading at 6412-fiat, up 0.54 percent from the latest low. On the US Dollar front, the DXY continues to act inverse against the bitcoin market. The correlation is too visible to evade notice. When DXY rises, bitcoin starts dropping. And when DXY starts dropping, bitcoin rises. In the past 24 hours, the DXY market has established a fresh two-month top near 96.60 after dropping to lows yesterday, while bitcoin, as stated above, has plunged.
BTC/USD Technical Analysis
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The intrarange action is having a go at the bitcoin market. The price, after reversing from its interim resistance around 6450-fiat, tested the intermediate support level at 6392-fiat, first introduced in this analysis. The technical indicators, accordingly, have shifted bias. The RSI indicator and the Stochastic Oscillator are both reversing towards their strong buying area, eyeing entry into the overbought region on hourly charts. The BTC/USD pair is also attempting a break above its 200 and 100 hour simple moving averages, indicating a near-term bullish bias in the market.
Nevertheless, it is a sideways action in a medium-term and bearish in long. The giant descending trendline mentioned in this analysis remains to be broken to its upside to confirm a steady breakout scenario.
Bitcoin Price Intraday Analysis
Our intraday strategy hasn’t moved one inch from our previous take on the market. As predicted, our short entry towards the intermediate target in red allowed us to exit on a small but a reasonable profit. A breakdown target towards 6300-fiat, however, led us to a minor loss after the price bounced back ahead of testing it.
That said, we are repeating our strategy anyway. The range we are watching today is defined by 6359-fiat as interim support and 6450-fiat as interim resistance. 6392-fiat continues to serve as intermediate support in the time of a downside action, and intermediate resistance in the time of an upside move.
We have entered a long position on a jump from 6392-fiat towards 6450-fiat as a part of our intrarange strategy. A stop loss order near 6388-fiat is protecting our trades from maximized losses should the upside gyrate. Meanwhile, we would be waiting for an extended upside action above interim resistance — a breakout scenario — in which we’ll open another long position, this time towards 6495-fiat. On this position, a stop loss just 4-pips below the entry point would have us exit the position on a small loss.
Featured Image from Shutterstock. Charts from TradingView.