- Bitcoin movements limited between $7,500 – $8,500 tight range for seven days.
- Bitcoin will continue to struggle in the $600 tight range unless support is established above $8,000.
Bitcoin is in the middle of a struggle to find the next course of action following the plunge from the 2019 highs above $9,000. At the moment the price is stuck in a range of about $600 between $7,500 and $8,100. This has been the situation for the last seven days.
The initial drop below $8,000 failed to find support at the confluence made by the 100 Simple Moving Average (SMA) and the 50 SMA 15’. This gave way to more declines as the price plunged massively to lows below the 23.6% Fib retracement level taken between the last swing high of $8,096.69 to low around $7,507.88. Additional losses sent Bitcoin to lows at the swing low before a reversal occurred.
BTC/USD 15 hour chart
The formidable gains cleared the resistance at the broken support of the 23.6% Fib level. While a correction past the 50 SMA ignited gains in an incredible engulfing candlestick. Bitcoin zoomed above $8,000 for the fight time this week but the gains have been limited under $8,100.
Meanwhile, the consolidation above $7,900 lost its cool gain on Tuesday with the price deepening the losses below the 50% Fib level. A reversal has occurred with Bitcoin recovering above $7,800. BTC/USD is currently trading at $7,805 way below the moving averages as an indicator of bearish pressure.
Looking at the short-term 15-minutes chart, we see the Relative Strength Index (RSI) sloping upwards after reversing from the levels at 21.87. If the indicator signal steps above the average, it is likely that the Bitcoin price will correct further up and reclaim the support at $7,900. However, as long as the 50 SMA remains below the 100 SMA, Bitcoin will continue to struggle in the $600 tight range.
Bitcoin Key Technical Indicators
RSI 15: Upward slopping trend hints correction from intraday lows of $7,735.68.
Moving Averages: 50 SMA below 100 SMA is a bearish indicator in the short-term.
Key support: $7,600, $7,400 and $7,000.
Resistance: $7,900, $8,000, $8,100.
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