Bitcoin Continues Range
Bitcoin prices continue to trade inside a relatively tight range. During the past week prices hit a high of $6,693 and a low of $6,419 dollars. This is a price difference of only $274 dollars or 4.2 percent. This is on the low side for the usually wild crypto market and especially compared to the volatility we had earlier in the year and during the entire last year.
It’s hard to say when this calmness will end but when it does big moves could happen, either up or down. It’s good to be prepared for every possibly and to not fight the market when the push comes. A decisive breakout above $6,825 dollars could start a new rally on the daily charts. Below $6,116 dollars the trend will shift to the downside. These are the two major inflection points we’re looking at right now.
Higher up there’s some resistance at around $7,409 dollars followed by the $8,000 round figure and the latest major swing high at $8,486 dollars. The $9,000 and especially the $10,000 round level could act as resistance to rising prices. On the lower end there’s weak support at the $6,000 round figure followed by the last major swing low at $5,883 dollars. This year’s low is at $5,790 dollars and is another notable support for BTC/USD.
The $5,700 to $6,000 area is a triple-bottom for bitcoin. This year we already got three bounces here in February, June and August. A clearing of this area could stopout a lot of traders and quickly lead to a test of the $5,000 round figure. As you can probably guess by the lack of movement, there’s no change in trends on the longer-term charts. Bitcoin is slightly bearish on the weeklies and slightly bullish on the monthlies.
Read also LTC/USD analysis
on FXOpen blog.