Bitcoin price on Wednesday consolidated sideways against the US Dollar, rangebound between two critical levels defined by $6,200 and $6,400. The BTC/USD kickstarted the day forming lows towards 6316-fiat. The early Asian trading session saw the pair attempting a moderate upside rebound towards 6400-fiat. However,…
Bitcoin price on Wednesday consolidated sideways against the US Dollar, rangebound between two critical levels defined by $6,200 and $6,400.
The BTC/USD kickstarted the day forming lows towards 6316-fiat. The early Asian trading session saw the pair attempting a moderate upside rebound towards 6400-fiat. However, a considerable selling pressure around 6384-fiat, September 11 peak, didn’t allow much upside extension. The pair, thus, reversed and retraced its focus towards 6250-fiat by mid-European session – only to find itself being bounced back.
It would appear the price is stuck ahead of the September 30’s ETF announcement by the US Securities and Exchange Commission. The probability of SEC accepting an ETF proposal stands low, and it could allow the price to slip through the bearish cracks – maybe towards 6000-fiat, so shorts close into the dips. ETF gets accepted and BTC/USD could so a complete reverse – a sharp rally towards 7000-fiat.
While September 30 is far, what we can do is look into our near-term perspectives. As of now, BTC/USD is trending inside a triangle pattern – somewhat accurate towards its lower highs and higher lows. The upper and lower trendlines together could provide hints for the next interim breakout/breakdown action, while ensuring traders have sufficient intrarange gap to execute their intra-range positions.
Bias wise, on larger timeframes, BTC/USD is still very bearish. The pair is below its 50H, 100H and 200H SMAs, indicators collectively screaming a selling trap. The RSI and Stochastic on a 4H chart are also trending sideways inside their respective neutral zones. The one thing to take away is that there are no reasons to stay bullish.
We are pretty much placing our positions inside the triangle formation. Therefore, a pullback from upper trendline will have us put a short position towards the lower trending, and a bounce back from lower trendline will have us put a long position towards the upper trendline. That’s plain intrarange strategy.
At the same time, we are going to keep our eyes open for a breakout/breakdown scenario. At the very time of this writing, we would enter a long position towards 6400-fiat on a successful breakout from the upper trendline resistance. Nevertheless, our stop loss 3-pips below the entry position would minimize our losses in case the pullback occurs.
Similarly, a breakdown strategy will be in place if price breaks below the lower trendline support. If it happens then it would allow us to enter a short position towards 6200-fiat while keeping a stop loss three-pips above the entry point.
Featured image from Shutterstock. Charts from TradingView.
Last modified: January 24, 2020 11:00 PM UTC