Bitcoin today underwent a slow and stable upside correction, rising as much as 4.5 percent from the previous day bottom at $6,317.
BTC/USD kicked off towards 6500-fiat during the early trading session and established its intraday high around 6580-fiat. The pair, however, began to settle down near the said high as the European trading session came into play. There were minor some bearish correction as the day matured. But, at the time of this writing, and at the beginning of the US session, the BTC/USD has extended its downside correction and is now forming lower lows towards 6450-fiat.
It seems that despite their irrelevance in a broader context, the ETF events are still impacting the buying and selling sentiment of traders. The price today reportedly rose on SEC’s decision to review the recently rejected ETF applications. It is starting to lose its upside team as the SEC news dries up.
We are still inside the rising wedge pattern we drew in our previous analysis. Therefore, our strategy for medium-term won’t be changing until we attempt a breakout above/below the wedge trendlines. Anyway – we drew a mildly visible trendline to check the support on the latest uptrend, which is still reflecting our potential support level as Bitcoin continues its bullish behavior.
Speaking of bullish, BTC/USD is indeed in buying zone. The pair is slightly above its 100H and 200H moving average trendlines, while the RSI and Stochastic indicators have entered the buying area post the mild downside correction. We are checking on the “mildly visible trendline” to look for any potential reversals. But for now, it all looks bullish for near-term.
After failing to reach our previous upside target, we had to quit our long position after our stop loss got executed. Nevertheless, the BTC/USD uptrend has allowed us to look into nearby levels, which will help us decide the achievable positions for the rest of the US session.
The range we are watching for today is defined by 6500-fiat as our newfound support, and 6621, our intraday high, as interim resistance. Our first impression of the market is a possibility of bearish correction. Should it happen, we are likely to slip below 6500-fiat and test the lower trendline of the Rising Wedge as our potential downside target. Meanwhile, our stop loss three-pips above the entry position will define our risk.
An extended uptrend, on the other hand, will have us play intrarange positions. That is: putting a long position towards 6621-fiat on a bounce from 6500-fiat and putting a short position towards 6500-fiat on a pullback from 6621-fiat. However, if price breaks above the resistance level, we will put a long position towards 6840-fiat while keeping our stops four-pips below the entry position.