- Bitcoin price is trading within a range as buying pressure lacks enough strength to stir action to the upside.
- The MACD clearly shows the buyers’ influence is giving to the stronger grip by the bears.
Bitcoin is currently consolidating within range after failing to breakout above the resistance target I explored yesterday at $8,600. The momentum struggled to find enough buying pressure to push to the next hurdle at $8,800. This opened the door for a reversal that is underway at the time of the press. The recovery from lows around $7,700 is likely to have been a fake pump unsupported by the low volumes witnessed over the last two days.
Looking at the two-hour chart, XBT/USD is trading above the short-term descending trendline resistance. The breakout at $8,000 propelled Bitcoin to the highs mentioned above. However, the congestion of sellers at the 100 moving average (MA) made it difficult for the buyers to sustain the momentum.
XBT/USD 2-hour chart
XBT/USD is exchanging hands at $8,2221 after holding above $8,200 (short-term support). The trend observed with the moving average convergence divergence (MACD) suggests that the power that the bulls wielded on Monday and Tuesday is gradually fizzling out and giving way for a stronger grip by the bears. The negative divergence signals that the strong bearish could is likely to continue in the coming sessions. According to CompositeTrader, a pro analyst on Tradingview:
“Bitcoin is consolidating inside the Trading Range and doesn’t seem like it has enough buy pressure to reverse this downtrend, just yet. Although there might be a fake pump into the Supply OB above, in order to gather enough liquidity and that, is where our entry initiates.”
XBT/USD Key Technical Levels
Spot rate: $8,240
Relative change: -84