Bitcoin (BTC) recent stability is due to low trading volume; positioning market in a choppy. The price at equilibrium signals a big shock wave around the corner.
Resistance levels: $4200, $5600, $6500
Support levels: $3200, $2800, $2500,
BTC/USD Long-term Trend: Bearish (1D chart)
On the daily RSI, Bitcoin is consolidating and still sitting at $3500; deciding on the next move. Could it be short or long? That is unknown yet. However, a shake-up is likely to reach $4200 resistance level.
On the Stochastic RSI, the market is gradually leaving the oversold. The buying pressure is compounding and the direction seems bullish than bearish. A strong selling pressure will sink price below the trend line thereby testing $3200 support level or even the 2018 ($3100) low.
Back to the chart, the candle sticks were strong compared to the last 72 hours weak ones. The pattern (three choppy candles) is common for changing trend in this market. After today, the next open might be followed by a break. Let’s wait!
BTC/USD Medium -term Trend: Bearish (4H Chart)
Exactly a month today, Bitcoin has been trending in a descending channel. Currently, the pair squeezes and maintains a side-way trend. But on the Stochastic RSI, the pressure has been up and down.
For how long will the Medium-term squeeze hold is uncertain. But definitely a sharp move is expected at any moment. A drop will find support at $3300 or $3200 support; the rise will visit $4200 resistance. For now, this resistance and support level is the major next target. Watch and monitor!
At the moment, the market is weak; trading activity and volatility are low. The last four days have recorded price ranging between $3500 and $3800. Look at the RSI playing along horizontally; indicating the price action.