The Bitcoin-to-dollar exchange rate on Friday remained entrenched into the stable territory amid low volume.
The BTC/USD is currently trading at 6406-fiat, just 0.42 percent above its intraday low. The pair continues to bounce between a $58 wide range, providing day traders plenty of profitable opportunities to enter and exit the market on every pullback action. At the same time, the quoted US Dollar index (DXY) recently posted yearly highs at 96.62-fiat but retraced back to the nearby support level at 96.08. The reverse correlation between BTC and DXY continues to stay true.
Fundamentally, the stability is encouraging bulls into believing a steady uptrend in the future. The accumulation sentiment near the so-called bottom around 6000-fiat attests to it. Nevertheless, every extended sideways consolidation results into dramatic price actions in case of bitcoin. So, one shouldn’t be too bullish before breaking critical resistances to the upside.
BTC/USD Technical Analysis
The zoomed-out version of BTC/USD chart brings the pair back inside the symmetrical triangle formation. The upper trendline of the triangle has capped the BTC/USD upside on two recent occasions. And a bullish action from here could first attempt to break above the triangle pattern and form higher highs towards the 200-hour simple moving average. At least the RSI is pointing in the same direction. The momentum indicator looks geared up to pursue a smooth upside. The Stochastic Oscillator, at the same time, is trending sideways.
The daily sentiment is bullish; monthly, stable; and yearly, bearish.
BTC/USD Intraday Analysis
The intrarange action has given us decent profits on both our long and short positions. The levels discussed in the previous analysis stands correct even today, defined by 6450-fiat as interim resistance, 6392-fiat as intermediate support, and 6360-fiat as interim resistance.
So, once again, we are first putting an extended position in the direction of the meantime resistance on a get better from guide, even as maintaining a forestall loss order 3-pips beneath the access position. once we test the resistance goal, we’ll wait for 2 viable outcomes: a breakout or a pullback. In a breakout scenario, we can open every other lengthy position, butthis time towards 6473-fiat as our primary upside goal. in this function, a prevent loss order three-pips below will outline our threat control approach.
During a pullback, we will open an as usual short position towards the intermediate support level while maintaining a stop loss order 2-pips above the entry point.
Near intermediate support, our focus will remain ripped between on a bounce back towards interim resistance and an extended downside action towards interim support.
Featured image from Shutterstock.
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