- In the short-term, Bitcoin is bearish and range-bound trading inside a descending price channel
- The Medium-term outlook for the number one crypto is starting to turn more bearish
- The Daily time frame shows that the BTC / USD pair has broken below a large descending triangle pattern
BTC / USD Short-term price analysis
Bitcoin remains bearish in the short-term with the number one cryptocurrency range-bound inside a descending price channel across the lower time frames.
Downside pressure is currently building as the BTC / USD pair drifts towards its current 2019 trading low on relatively depressed trading volumes.
Traders should watch for a sustained break of the $3,300 to $3,600 price range as it will likely trigger the next directional move in the BTC / USD pair.
The descending price channel on the four-hour time frame is currently defining trading action for the BTC / USD pair. There is a high probability that traders will continue to scalp the range inside the price channel until a clear channel breakout has been confirmed.
The MACD indicator on the mentioned time frame is currently neutral and providing no clear trading signal.
The Relative Strength Index indicator is slightly bearish, although recent selling momentum appears to have stalled.
BTC / USD Medium-term price analysis
Bitcoin is bearish over the medium-term and currently trades below a large descending triangle on the daily time frame. Substantial downside could be on the horizon for the BTC / USD pair, given the overall bearish trend present and bleak technical outlook.
The late December rally in Bitcoin has largely fizzled out, with the number one cryptocurrency continuing to erode a substantial portion of recent gains.
At present, selling momentum is lacking follow through after the pair’s break from the well-defined descending triangle pattern. Traders should watch for losses below the BTC / USD pair’s 2018 trading low as a point trigger for technical selling.
Aside from the large Descending triangle pattern, daily price closes under the BTC / USD pair’s 2018 trading low should be watched closely.
The MACD indicator is almost entirely flat on the daily time frame, largely due to the prolonged period of price consolidating in the BTC / USD pair and extremely narrow trading ranges.
The Relative Strength Index is slightly bearish, and has further scope for the BTC / USD pair to run lower before becoming oversold.
Key Levels To Watch
Key near-term support is currently found at the $3,300 and $3,200 levels. A move below the $3,000 level would likely heighten technical selling toward the $2,650 to $2,500 support regions.
A break above the $3,660 level may provide some short-term relief for the BTC / USD pair. Key resistance above the $3,660 level is found at the $3,960 and $4,200 levels.
Bitcoin is bearish in the short and medium-term and may soon test towards its 2018 trading low.
Traders should watch the descending price channel on the lower time frames, as it will provide a solid indication of Bitcoin’s next strong directional move.
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