- BTC/USD embarks on another sideways trading action between $4,007.08 and $4,040.00.
- The trend on the upside remains elusive to the bulls
- Bitcoin bearish bias continues to limit upward movement.
Bitcoin price short-term outlook – BTC/USD 1-hour chart
BTC/USD is trending slightly lower on Friday ahead of the weekend trading sessions. The upside action is supported by the rising trendline while the 50 SMA 1-hour is offering immediate support at $4,008.00. A quick glance at the 1-hour chart shows that BTC/USD has embarked on another sideways trading action between two key levels:
Support 1: $4,007.08
Resistance 1: $4,040.00
Bitcoin is currently gradually breaking down towards the support 1 and could retest the critical $4,000 in the mid-morning (GMT) session. Further downside movement is likely to continue towards other key support zones:
Support 2: $3,980.00
Support 3: 100 SMA 1-hour
Key support: $3,880.00
The trend on the upside remains elusive to the bulls. Following the rejection at the intraday high at $4049.75, there is more force pushing Bitcoin downwards than upwards. This is a sign of exhaustion on the side of the bulls. However, for continued upward action, we must see Bitcoin correct above the range resistance and target $4,190 in the short-term. As far as the current short-term trend is concerned, Bitcoin has a bearish bias.
BTC/USD 4-hour chart: Triangle Breakout looms
The 4-hour timeframe chart shows Bitcoin in a sustained uptrend since the beginning of February. From the February lows around $3,340, BTC/USD embarked on a journey of breaking barriers above the 100 SMA at $3,451 and the 200 SMA at $3,574.79. The upward movement rose against all odds to form a high around $4,189.60 before a significant correction occurred. Despite the correction, the 200 SMA 4-hour has been a key support line preventing further breakdown at $3,657.31 and $3,800.
A triangle pattern that has been lagging reaction since the beginning of March is approaching a breakout. The buyers must, however, increase their entries to send BTC/USD above the triangle resistance and place it in an upward trajectory towards $4,189 (previous month high). A correction past $4,200 (critical level) is needed for Bitcoin to shake off the bear pressure and focus on higher levels starting with $4,400.
Bitcoin price technical levels send mixed signals
According to technical indicators like the RSI, the triangle breakout could continue to lag the reaction. For instance, the RSI has been slopping downwards since the failed breakout at $4,040. At the moment the indicator at 54.35 is grinding lower. The good news is that the RSI has avoided the oversold territory since Bitcoin’s waterfall drop on January 14. Besides, the MACD is currently in the positive region and gradually trending upwards as a sign of the building bullish pressure.
Other key levels to lookout for:
RSI 4-hour: 54.35
MACD 4-hour +18.57
200 SMA 4-hour $3,892.19
100 SMA 4-hour $3,955.67
Spot rate: $4,013.26
Relative Change: +0.02