BTC/USD Medium-term Trend: Bearish
Resistance: $7,000, 7,500, $8,000
Support : $6,000, $5,500, $5,000
Last week, price of Bitcoin was in a range bound movement. The asset fluctuated from the resistance level at $8,000 to the low of $7,000 all through the week. However, since the asset was ranging, it was suggested that traders should adopt a range bound market strategy to trade the asset. That is, if price of the asset gets to the resistance level, a short trade should be initiated. Also, if price gets to the support level, a long trade should be initiated. Meanwhile, the asset is currently trading at $6,769.95 as at the time of writing.
However, from the 4-hour chart, price of Bitcoin is out of the range-bound levels of the market. The asset has broken the support level at $7,000 and had fallen to the low of $6,695.32. Price of Bitcoin had almost reached the previous low of $6,587.54. After the downtrend, price is now in a sideways trend consolidating at the support level above $6,500. If the selling pressure is over and the bulls hold on to that level, traders should initiate long positions and put their stop loss below $6,500.
BTC/USD Short-term Trend: Bearish
On the hourly chart, price of Bitcoin is in a bearish trend. The asset has fallen to the low of $6,666.95 and it is consolidating at that level. Meanwhile, the relative strength index period 14 is level 30 indicates that the market is oversold suggesting bulls to take control of the market.
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