BTC/USD Technical Analysis update:
I haven’t done TA for BTC this week because indicators are too controversial. Technical Analysis works the best when market has obvious trend: bullish or bearish. Unfortunately, since BTC is moving sideways, I hesitate to give precise analysis. Despite that, I want to share some thoughts and my vision of BTC.
- Since yesterday, BTC moved over $8400 – important resistance line, which gave additional confidence for buyers and long-term investors. Despite that, another important resistance level at 8600 wasn’t crossed. Inability to cross $8600 in the nearest time might trigger negative movement: Return to $8200 and $7900. If buyers won’t show any activity at $7900, we might still move down to $7650. In my opinion, this scenario is still quite possible, and for that reason I bought some BTC for $7970 price only partially (10%).
- Positive scenario: To keep price growing, we need to move over $8600 within next 48 hours. If that will happen, BTC should easily move to 8800 – 8950 level. It’s another important resistance level that opens road up to $9400 USD level.
- Indicators: Currently, RSI value is 60 (4 hour), which is close enough to “overbought” indicator 1 hour RSI shows solid “overbought” value – 74. While the price is growing, trading volume is decreasing, indicating weakness of buyers and absence of absolute bull confidence.
MACD: On daily chart, 26 and 12 day EMA’s are converging during uptrend, which might indicate further bullish movement.
As you can see, there are several conflicting indicators that show different values, therefore I will abstain from any significant trading activity and will wait till I get strong and clear signals