Bitcoin Price in Near-term Bias Conflict as $4,000-Resistance Teases


bitcoin price block punchbitcoin price block punch

The bitcoin price consolidated this Thursday as $4,000-level continued to block the rally from a breakout attempt.

The bitcoin-to-dollar exchange rate dropped as much as 5.36 percent of its value since its yesterday’s high at $3,971. The pair at press time is correcting higher on moderate volumes, up 0.71 percent from its intraday low at $3,758. The US dollar rate is posting minor losses owing to poor export data from the US markets. But its benefits are visibly going to the Japanese yen the most.

Bitcoin is heading towards the neckline formation of the inverse head and shoulder pattern in blue, clearly complimenting the selling sentiment below $4,000. Also acting as a strong resistance is the 50-period moving average depicted in navy blue.

BITCOIN 1D CHART | SOURCE: COINBASE, TRADINGVIEW.COM

So far, a breakout attempt is looking less likely to happen on every pullback action. At worst, bitcoin could form a double bottom above $3,000 or extend its bearish momentum to establish a new two-year low. Under an ideal circumstance, bitcoin could continue to consolidate sideways inside the current range, bringing the market to a bias-conflict scenario.

The RSI momentum indicator since July 2018 has not crossed above 60, a bullish zone. It is creating higher highs ever since bottoming out in December 2018, now awaiting a breakout or pullback action, also confirming the beginning of a near-term bias-conflict.

Bitcoin Intraday Targets

The bitcoin price action as of now is following a minor uptrend, setting its upside target towards the neckline, as discussed above. Our intraday strategy is more focused on historical levels to get in and out of the market on small profits. We are treating the rising trendline of the right shoulder as our indication to apply our intrarange strategy.

BITCOIN 4H CHART | SOURCE: COINBASE, TRADINGVIEW.COM

That said, if bitcoin breaks below the blue rising trendline, then it would have us open a short position towards our immediate downside target defined by the 200-period moving average. A further break and we’ll extend our downside target to $3,567. In both the cases, our stop-loss order will be maintained just 1-pip above the entry position.

If bitcoin continues to form higher highs while staying above the rising trendline, then we will wait for the price to break above the neckline. As it does, we will open one long order towards $4,000 as our interim upside target. A stop loss just 1-pip below the entry position would maintain our risk management strategy.

Trade safely!

Featured Image from Shutterstock. Charts from TradingView.

Advertisement

Advertisements

Published by

trendfunnelsuk

SOLA OLOJEDE : Sales Funnel Architect & Seo Consultant I love the conversions, reports, metrics, and have a passion for building profitable sales funnels.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s