In the last few days, the price of Bitcoin has been trading around $ 9,400, following the line of the 50-day moving average of the daily and 4-hour chart.
These sideways movements began about a week ago, and excluding a small drop below $ 9,200, the trading range is $ 9,200 – $ 9,500, which is an unusually stable behavior on the part of Bitcoin .
The flagship cryptocurrency does not like to stay in one place for too long. In other words, a sharp and strong move is inevitable, and it seems we can see one during the weekend.
On the 4-hour chart, we see Bitcoin form a symmetrical triangle. This underscores the narrow scope of the currency, as well as the fact that both scenarios – bullish and bearish – are valid.
The last two days showed the lowest volume since March.
The daily index of relative strength is also consolidating and is currently hovering around 48. A break above the zone 50-52 would be a very bullish sign.
The first resistance is at $ 9,400 along with the 50-day moving average line. Above that, we have $ 9,600, which is the highest price for the last 7 days. Above, we have strong resistance at $ 9,800 – $ 9850.
On the downside, the first support falls to $ 9,230, which is the lowest price in the last 4 days. Further down, the $ 8,900 – $ 9,000 zone should act as a strong support. There is also the bottom for the week.
BTC / USD BitStamp daily chart
BTC / USD BitStamp 4-hour chart