ForexMinute.com — It is nothing but the low trading volume that is keeping the cryptocurrency market boring now a day. In last few weeks, we have seen some heavy upward and downwards movements in Bitcoin charts. But at the same time, we have also seen traders not playing any uncertain trade, i.e. above or below the breakout points.
In over the last 24 hours as well, Bitcoin market has returned to trade in a congestion pattern. As you can see the chart above, the Bollinger Bands have stiffened, clearly indicating the low volatility that haunts the market. In past, such a price action have always resulted into a downward slope, barring the early speculative days. As price continued to trend in this stiff trading range, we could expect it to test the new bottom around 227 anytime today.
As per the technical indicators on a 4H BitFinex chart, we can see how price has almost converged into its 200-h SMA, while is still staying below the 50-h one. The RSI at the same time is clearly in a selling area, around 43. The MACD blue curve is indicating to go below its signal curve, while staying a little below the normal line. The near-term dynamics are definitely bearish, but the congestion pattern could change them within a blink.
At press time, we believed the 232-324 area makes a good entry point, as this level has induced a notable rally in past few occasions. Price has also slowed down multiple times near its prevailing resistance around 240-241 area. So plan a profitable exit there. In case price tends to show signals to pass above the aforesaid resistance, you can play a near-term long around 242-244 area. Though it will be a risky trade, so beware.
In case price bounces back from 240-resistance once again, make sure to set your stop around 237 for downside profits. Even the 235- support could prove to be a timely exit.
In over the last 24 hours, Litecoin, Dogecoin and Darkcoin have been trending sideways, probably under the influence of weak Bitcoin trades. While there have been practically no change in the price behavior of Litecoin and Dogecoin, Darkcoin meanwhile has fallen by 1.5% in last 24 hours.