Bitcoin on Wednesday depreciated more than 3.5 percent from its yesterday’s high near $6,659.
The BTC/USD has been under a bearish impression since September 28 but has found strong support near 6500-fiat. The downtrend today also tested the level, broke below it only to see an influx of long positions around it. The minor upside retracement could also be explained with the formation of a near-term symmetric triangle, whose lower trendline offered support once BTC/USD sought a downside target below 6500-fiat. As of now, the pair has reclaimed its support and looking to erase some of the intraday losses.
BTC/USD Technical Analysis
BTC/USD is reversing from the triangle support and is targetting the upper falling trendline as its potential Long position target. We are seeing a similar pattern in both the RSI and Stochastic, which are now reversing from their selling areas, indicating a push to the upside. BTC/USD would first need to go above its 50H SMA to establish a near-term bullish bias. If it happens, then we can expect a smooth uptrend towards 6659-fiat, the intraday high coinciding with the upper trendline of the triangle formation.
Not to mention, we are still bearish on a 4H chart.
BTC/USD Intraday Analysis
The range we are watching today is trapped between the triangle formation, defined by upper trendline as our interim resistance and lower trendline as our interim support. We have initially placed an intrarange long position towards the upper trendline – 6659-fiat – while keeping our stop losses 3-pips below the entry level.
If we manage to secure our profits from the said long, we will be waiting for the candle to close before opening a new position. That said, on a hint of a pullback, we will stick to the intrarange strategy and put a short position towards the lower trendline support. On a breakout, however, we will first look 6680-fiat for a false breakout signal. If that level is broken, we’ll enter a long position towards 6675-fiat, while maintaining our stop loss 4-pips below the entry level.
To the downside, a break below lower trendline support will have us open a short position towards 6371-fiat, our primary downside target as a stop loss two-pips above the entry level defines our risk.
Featured Image from Shutterstock. Charts from TradingView.