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Bitcoin (BTC) remains in the lateral range after a sharp decline on May 12. Consolidation occurs between the levels of $ 28,600 and $ 30,700, while the price regularly bounces off both boundaries of this range.
On May 12, the bitcoin rate fell to a local low of $ 25,400, and the fall of BTC stopped there. The Doji candle formed that day has a very long lower wick, and the fact of surrender was confirmed by the maximum daily trading volumes (blue arrow) since May 19, 2021.
Since then, BTC has traded in the range of $28,600 – $30,700 (blue lines), only once making a bullish break on May 15, which turned out to be false.
Technical Indicators BTC
Technical indicators of the daily chart give mixed signals, which is typical for the consolidation phase. On the one hand, the RSI index is at the level of 40 and is slowly growing inside the neutral area. Meanwhile, the MACD histogram is still deep in the overbought zone.
On the other hand, the RSI broke through above the downward resistance line and turned it into a support (red circle). In addition, the MACD has formed a bullish intersection (blue circle) and has been forming rising momentum bars for seven days.
On the 4-hour timeframe, the indicators also confirm a short-term sideways trend. Since May 12, the RSI index has remained in a parallel channel within a narrow range, the median line of which coincides almost perfectly with the neutral level of 50.
The MACD histogram is also almost perfectly superimposed on the level of complete neutrality of 0, and the bars of negative and positive momentum become weaker. This is also confirmed by the BBWP volatility indicator, which is approaching the area of minimum volatility (arrow).
On the 4-hour chart, BTC is traded inside a symmetrical triangle. Statistically, both a bearish and bovine breakthrough from it are equally likely. At the time of writing, the market is again testing the lower bound of this pattern.
In the event of a bullish breakthrough, the technical target of the market will be the area of $ 35,000. It coincides with the CME gap of May 6-9. If bitcoin makes a bearish breakdown of the triangle, then the goal of sellers will be the level of $ 25,000.
Cryptocurrency trader @CryptoMichNL shared his chart on Twitter with the “symmetrical triangle” pattern. In his opinion, in the relatively near future we can expect his bullish breakthrough, while the trigger for such a price increase may be, in his opinion, data on a decrease in inflation or an increase in the number of applications for unemployment benefits.
He explained that such macroeconomic factors may lead to a reduction in the volume of monetary tightening. This, in turn, will have a positive impact on the overall mood of the markets regarding risk, which will affect, among other things, bitcoin and the cryptocurrency sector.
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