BTC Trading In A Tight Range, Huge Move Coming Up Soon?

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Last Thursday, Bitcoin broke out a triangle pattern, the second in the same week, as can be seen on the following 4-hour chart. The breakout initiated an immediate $400 price gain, surpassing the $9000 benchmark level.

Over the past two days, after breaking above the $9K mark, we saw Bitcoin trading in a tight range between $9000 and $9200.

While Wall Street and the global markets were crashing further 5% over the past two days of trading, Bitcoin successfully disconnected its recent correlation to the markets, and now all eyes are on the primary cryptocurrency – is Bitcoin a real safe-haven like Gold or not?

Back to the charts: the recent declining amount of trading volume, along with the consolidation of the RSI indicator around 50, likely to predict a huge move coming up.

It’s still early to say whether the coming-up move will be to the bullish or bearish direction; however, a break above $9200 or below $9000 is likely to decide the short term for Bitcoin price.

Total Market Cap: $263.7 billion

Bitcoin Market Cap: $166.7 billion

BTC Dominance Index: 63.2%

*Data by CoinGecko

Key Levels To Watch & Next Possible Targets

– Support/Resistance levels: As mentioned above, Bitcoin is trading between $9000 and $9200.

From above, the first level of resistance is $9200. Further above is $9300, which is also the 50-days moving average line (marked pink, ~$9310), along with a mid-term descending trend-line marked on the daily chart. In case the last two are broken up, then the next resistance is $9400 and $9600.

From below, the first level of support is the $9000 mark. Further below lies $8800 and $8700, which is also where lies the 200-days moving average line (marked light green on the following daily chart). The next support lies at $8650 (the low from the past week), before the $8500 support level.

– The RSI Indicator: As mentioned above, the momentum indicator is stuck at the 50 crucial level. This is a turning point between a bearish and bullish momentum.

– Trading volume: As discussed above, the trading volume is declining, indicating a possible coming up move.

BTC/USD BitStamp 4-Hour Chart

btc_mar7_4h-min

BTC/USD BitStamp 1-Day Chart

btc_mar7_d-min

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.



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