- Bitcoin stuck within a tight range between $5,000 and $5,100.
- The most likely path of least resistance for BTC/USD is sideways according to technical levels.
BTC/USD is almost motionless following the calm that came after declines experienced on Thursday. The slight recovery from the support established at the 61% Fibonacci retracement level taken between the last swing high of $5,500 and a swing low of $3,882.17, made no significant headway above $5,100. Since then the upside is capped below $5,100 while the downside is supported at $5,000.
Bitcoin price short-term outlook: 4-hour chart
The 4-hour chart places Bitcoin in an uptrend in spite of the setback this week. The downward trend did not break below the rising trendline. The upside is currently limited by the 21 Simple Moving Average (SMA)-hour currently holding at $5,125.02. The 50 SMA has just crossed above the 21 SMA to show that the bears have an upper hand on the market.
According to the moving average convergence divergence (MACD) 4-hour, BTC/USD still has a bearish bias. The MACD is still locked inside the negative zone. However, it has stopped the downtrend and is now ranging at -22.94.
The relative strength index (RSI) in the same 4-hour range has recovered from the lows around 38.85. The uptrend has, however, lost strength short of 50.00 and is moving horizontally at 49.14. The most likely path of least resistance for BTC/USD is sideways at the time of writing.
Bitcoin Price Key Technical Indicators:
Resistance 1: $5,100
Resistance 2: $5,250
Resistance 3: $5,500
Support 1: $5,000
Support 2: 61.8% Fib level
Support 3: $4,750
21 SMA: $5,125.02.
50 SMA: $5,138.57
MACD 4-hour: -22.94.
RSI 4-hour: 49.14.
Meanwhile, new research released by Binance exchange indicates the correction witnessed from the lows in 2018 means that the market has finally found a bottom. A quote from a crypto expert says that
“having emerged from a period of the highest internal correlations in crypto history, the data may support the notion that the cryptomarket has already bottomed out.”
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige