- The short-term technical charts show a bearish bias but BTC/USD is strongly supported at $5,175 – $5,200.
- Bitcoin price sideways trading at $5,250 ignores the down trending RSI.
Bitcoin has recorded three days of slight gains. However, the bulls appear to be getting exhausted due to the failure to make headway above $5,300. The short-term technical charts show a bearish bias but BTC/USD is strongly supported above the positive zone at $5,175 – $5,200.
Chart source: Tradingview
BTC/USD trading at $5,250 has remained largely unchanged on Friday on Coinbase. The recent gains invalidated the bearish reversal on Monday when price corrected below $5,000 before finding support around $4,950. There was a pullback above the 100 simple moving average (SMA) 1-hour chart. A bullish candle pushed Bitcoin into a positive zone ($5,175 – $5,200). Further correction to the upside stepped above the stubborn resistance at $5,300. Bitcoin then formed a high at $5,317.81 before the bears forced their way to push the price below the rising wedge pattern support.
The slump of Friday found support marginally above the above-mentioned bullish zone at $5,175 – $5,200. Moreover, the 100 SMA 1-hour supported the rebound that has ignored the rising wedge pattern breakdown. The price is currently hovering around $5,250 amid a bearish momentum in the hourly relative strength index (RSI). The indicator has been in a downward sloping direction since the reject at 70.00 yesterday.
However, any dips in the price will remain support above the bullish zone which has function as a rebound wall on two other occasions, see chart. In addition to that, the rebound on Monday ignored the dropping RSI and reversed the trend. The slopping RSI is also likely to be given a blind eye as the bulls take positions to push Bitcoin above $5,300 in readiness for a correction to $5,500. On the other hand, if the price dips below the bullish zone, other support levels to lookout for are $5,100, $5,000 and $4,950.
Bitcoin Key Technical Indicators:
100 SMA 1-hour: $5,190.30.
MACD 1-hour: Ranging at the mean line (0.0) – depicts BTC/USD sideways trading.
RSI 1-hour: Downward slopping at 45.16
Key support zone: $5,175 – $5,200.
Main Support: $4,900.
Immediate resistance: $5,279.99 (Friday opening price).
Critical resistance: $5,317 (week’s high).