Bitcoin (BTC) worth is caught in a $400 vary outlined by key technical ranges and the route of the breakout will probably set the tone for the following transfer within the cryptocurrency.
The decrease finish of the buying and selling vary is $6,341 – double bottom neckline (former resistance-turned-support), which was scaled on June 30.
Meanwhile, $6,754 (23.6 p.c Fibonacci retracement of the sell-off from $9,990 to $5,755), which put brakes on BTC’s rally earlier this week, marks the higher finish of the buying and selling vary.
A convincing transfer above $6,754 would sign a resumption of the rally from $5,755 (June 24 low) and would open the doorways to $7,000, as indicated by the double backside breakout and bull flag breakout earlier this week.
On the opposite hand, the bullish case would weaken considerably if costs discover acceptance beneath $6,341.
That stated, the quick period charts point out the chances are stacked in favor of a draw back break of the buying and selling vary. At press time, BTC is altering fingers at $6,520 on Bitfinex – down 1 p.c on a 24-hour foundation.
The bears might really feel emboldened by BTC’s transition from rising channel (bullish setup) to falling channel (bearish setup), as seen within the chart above.
Further, Bollinger Bands (commonplace deviation of +2,-2 on 20-hour shifting common) are trending south, indicating a bearish setup.
BTC can be buying and selling beneath 50-hour and 100-hour shifting common (MA), indicating the trail of least resistance is to the draw back. More importantly, 50-hour MA dangers falling beneath 100-hour MA within the subsequent few hours (bearish crossover).
The draw back break of the rising channel yesterday added credence to the bearish relative energy index (RSI) divergence and strengthened the bear case.
The chart additionally exhibits Bollinger Bands have adopted bearish bias (starting to fall).
- BTC dangers falling beneath $6,341 (double backside neckline – former resistance-turned-support, the decrease finish of the buying and selling vary) as indicated by the bearish setup on the hourly and Four-hour chart.
- Acceptance beneath $6,341 would abort the bullish view put ahead by the double backside breakout, bull flag breakout and bullish falling channel breakout and would shift threat in favor of a drop beneath $6,000.
- On the upper aspect, an aggressive transfer above the numerous impediment of $6,754 (23.6 p.c Fibonacci resistance) would bolster the already bullish technical setup on the daily chart and open doorways to $7,000.
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Original article first appeared in https://www.coindesk.com/stuck-between-key-chart-points-bitcoin-price-seeks-direction/