Bitcoin price today consolidated sideways within a strict range, never indicating a breakout optimism.
At the beginning of the Asian trading session, the BTC/USD has slumped by 3.5 percent only to settle the mid-session inside an oversold area. The pair attempted a weak bullish recovery as the day matured, and rose as much as 2.8 percent by the beginning of the European session. We are now looking at a low volume market, showing no interim bias as the US session begins. In medium-term, we are in a bullish zone, targetting 7000-fiat as an upside to our next potential breakout. At the same time, a long-term analysis remains to put us in a bearish bias.
We continue to trend ahead inside the rising wedge we discussed in one of our previous analysis. The pattern only allows us to look at our breakout positions from the medium-term perspective. Therefore, any break – to the downside, or to the upside – could potentially rise/fall as high/low as $700.
But indeed, the near-term perspectives are more relevant to our intraday positions. The BTC/USD is in a bullish zone, merely because of a combined support from 100H and 200H moving averages. The latest upside action has also brought RSI and Stochastic into a Buying Sentiment area. A weak momentum is the only bearish factor in the price action as of now.
The upside targets we had put yesterday were achieved on decent profits. As the new session begins, we are hoping BTC/USD will continue the upside momentum towards 6800-6808 resistance area, while holding its leg near the 6500-fiat support. It is the range we are watching for the rest of the session.
We have entered a long position towards 6800-fiat on a bounce from 6560-fiat with stop loss 4-pips below the said entry point. If the price breaks above the resistance area, then it will allow us to out another long position towards 6893-fiat, our upside target and August high. Our stop loss in this position would be placed 4-pips below the entry point.
Looking the other way, a break below 6600-fiat coupled with a high momentum indicator will invoke us to put a short towards 6500-fiat. At the same time, we will put a stop loss two-pips above the entry position to define our risk management perspective. Similarly, a break below support will bring 6256-fiat back in sight as our potential downside target.
Featured image from Shutterstock. Charts from TradingView.