Bitcoin (BTC): The Technicals, The Outlook
Bitcoin is ranged in here, and the direction of the next breakout is uncertain.
Bitcoin was expected to rise toward 7,000 at the weekend, having broken above a Key technical mark Friday. However, contrary to expectations, BTC Bulls failed to take up the supply around 6,600 in the frame.
But, BTC’s Bears have struggled to bring the #1 cryptocurrency below the Psych support at 6,300.
BTC is now trading with a narrow range.
Currently, Bitcoin is trading at 6,290.2251,-149.44, or -2.32%, as of 5:31a BST, the market is open
As seen on the chart above, BTC has created a narrowing price range known as a Pennant pattern, over the last 5 sessions.
Monday, the Pennant resistance is at 6,595 and the support is seen at 6,320.
A Bullish breakout would be confirmed if the 4-hr candle closes above 6,595, adding credence to the Bullish RSI divergence and a beach of a Key falling trendline seen earlier this month and would open the way to a stronger rally towards the round number psych resistance at 7,000.
But, the Bears could growl if the 4-hr candle closes below 6,320.
If that occurs, BTC could drop below 6,000, and a Southside break of the Pennant would push the RSI below the rising channel support, that validates the Bearish pattern.
On the daily
A Bullish crossover between the 5 and 10-Day MAs indicates least resistance is to the Northside
So, the overall bias is Bearish as long as Bitcoin trades below the ascending trendline drawn, as it is now both the rising trendline and 100-day MA are located at 7,067, Key resistance
- A bull pennant breakout will allow a rally to 7,000, as per the daily would turn Bullish if prices find acceptance above 7,067 the important resistance.
- A Pennant breakdown would shift risk in favor of a drop to the February low at 6,000
- The supports at 5,859, and 5,755 come into focus if the Bulls do not defend 6,000
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