BTCUSD fell from the $10k mountain on June 2. Since then, things have been pretty quiet in the Bitcoin space. The daily traded quantity is pretty low.
The data from CME paints a different picture. The interest in the BTCUSD Futures and options is increasing. Out of all the trading activity, the quantity taken for delivery is low. It shows that people are not expecting BTCUSD to rise in the short term.
BTCUSD technical analysis and price movement
The four-hour BTCUSD chart shows the consolidation. The opening and closing prices of BTCUSD are pretty much the same over the last few trading sessions.
It is in contrast to Bitcoin’s otherwise volatile nature. Investors and traders are expecting a breakout soon. At the same time, everyone is playing safe.
BTCUSD is within an ascending triangle pattern, which is considered a Bullish formation. However, the volume needs to go up for a higher breakout.
BTCUSD faces Bearish pullback
The four-hour timeframe shows that BTCUSD is falling below the 50-period Simple Moving Average. It could potentially be a stiff resistance level for Bitcoin.
Bitcoin could significantly drop to $9,100 from here if there is no support of buyers. The day’s range is $9,566.81 — $9,897.46. Although it is still hanging in that zone, the Bears’ domination could bring it down anytime.
However, the technical indicators one a short-time frame are Bullish.
BTCUSD is currently trading at $9,719.86, and the 200-period SMA is at $9,410.97. It signifies Bullish momentum.
Most of the other moving averages show the same momentum. The oscillators such as the Relative Strength Index, or RSI, and the MACD are neutral on Bitcoin. The Bullish nature of the indicators and the low traded volumes in Bitcoin are contrasting. It suggests that BTCUSD might make a big move pretty soon.
The direction of the movement, however, remains unclear!