Bitcoin price on Wednesday recorded a marginal drop of 0.25 percent against a strong U.S. dollar.
The BTC/USD today stayed on its prevailing sideways trend, exhibiting intrarange fluctuations of just around $100. The pair began the Asian trading session sheepishly, forming lower highs towards 6308-fiat and lower lows towards 6219-fiat. The sideways sentiment continued as the pair headed into the European session. The Bitcoin market generally suggested an equivalency between supply and demand. Traditionally, the period of consolidation should continue until a breakout/breakdown action gives it away.
BTC/USD Technical Analysis
BTC/USD, as predicted, is trading inside a bear pennant of the current downtrend. The pair has tested both the channel resistance and channel support of this symmetric triangle in the past 24 hours, establishing slightly higher and lower breakaway levels, respectively. The chances of an upside breakout look meager at this point of time owing to the prevailing bearish sentiment. What we can expect here is bears losing their cool and attempt a breakdown in order to make ideal buying sentiment at the next low. A bear pole formation, indeed.
The BTC/USD pair is also trending below its 50H, 100H and 200H SMA, with the 50H now way below the other two. The RSI and Stochastic due to the ongoing consolidation action have found themselves in neutral areas, indicating a bias conflict.
Overall, its a strongly bearish market going the action of moving averages itself.
BTC/USD Intraday Analysis
Our strategy to apply intrarange strategy – between the channel resistance and support of the prevailing bear pennant – has given us some decent profits in the past 24 hours. As we now closer to the point of breakout/breakdown, we are first waiting for the action to mature before coming up with the positions for the rest of this Wednesday.
A breakdown action will have us wait for BTC/USD to break below 6172-fiat, our interim support level. Should it happen, we will enter a short position towards 6010-fiat, our downside target while eyeing the previous bottom near 5857-fiat for a retest. In both the shorts, we will place our stop loss 4-pips above the entry point to minimize our risks.
A breakout above the channel resistance will have us put a long position towards 6400-fiat, our psychological resistance level. A further break and a similar position will be placed towards 6500-fiat, our upside target while keeping our stops just 4 pips below the entry position.
Featured image from Shutterstock. Charts from TradingView.