ForexMinute.com — Last 24 hours in the cryptocurrency market has been sluggish for Bitcoin, as it continued to trend sideways in absence of influential trade volume. At this point, we believe the absence of any specific breakout has been caused by a relatively strong dollar, where traders are simply waiting for Bitcoin price to break below the downside support, so as to buy it at cheap. Let’s have a detailed study:
Bitcoin 4H Chart
The crashes are momentary, but the way Bitcoin price holding itself above the channel support promises a steady upward movement for medium term. Ever since testing this month’s bottom near 213, the Bitcoin price is on an uptrend, with a rising trendline indicating a medium-term run towards 249-250 area, the psychological support area.
However, Bitcoin is still failing to establish any near-term bias due to a very weak trade volume. The volatility, as you can see in the chart above, is growing lower than last few days. The price meanwhile is still way above the 50-, 100- and 200-H SMA, with the 4H RSI staying just shy of 60. The MACD curve is also trending in a positive territory. These indicators imply an untrustworthy bullish bias in the market, thanks to the strict trading parameters in which Bitcoin is.
At this point of time, Bitcoin is still testing 243 as its in-term resistance, with primary upside risk near 245. If any of these levels are broken in next 24 hours, it will open a smooth area for Bitcoin to retest the channel resistance near 249. Traders wondering to place long positions should therefore hold their hands until a proper upside bias is established.
However, now is a good time for placing short positions, if the previous movements are referred. In case the low volume extends the horizontal movement, there is likely to be a small breakout towards the in-term support at 238. A further breakdown will simply put pressure on the trendline to keep the price from falling into a medium-term bearish bias. If the trendline is invalidated, the Bitcoin price will simply retest the channel support near 230, with a downside risk towards 225.