The recent drop from $10,000 resulted in BTCUSD moving within a range. Although the massive selling pressure has reduced, investors are staying away from making significant investments in Bitcoin.
Bitcoin’s drop resulted in people selling of Ripple [XRPUSD] and Ethereum [ETHUSD] and other smaller cryptos. Although ETHUSD recovered from the fall, Ripple is sliding further down.
BTCUSD above a crucial support level
BTCUSD is currently trading just above the support level at $9350. A slight drop from this level could trigger another massive sell-off as the next support is close to $9,000!
The number of short positions on BTCUSD indicates that the consensus is on Bitcoin going further down. A short term trading strategy could be going short on BTCUSD if it falls below $9,350. After the confirmation, the approach could easily yield a 3% return.
Technical snapshot of BTCUSD
Bitcoin is currently trading around $9,431. The daily chart shows the consolidation phase for BTCUSD.
The trendlines that join the peaks and the trendline joining the bottoms give the probable range within which BTCUSD could move. As of now, BTCUSD is at a fundamental price level. If it moves up, it will continue progressing in a limited range.
MACD had a downward crossover recently. Most other technical oscillators are neutral on BTCUSD at the moment. It is suggestive of the fact that Bitcoin’s consolidation might continue!
The moving averages are, however, Bearish on Bitcoin. The 20-day Simple Moving Average and the 20-day Exponential Moving Averages are above the current traded price of Bitcoin. It shows that BTCUSD is Bearish in the short term.
However, the 200-day SMA is at $8181.73, which shows Bitcoin is Bullish in the long term. Traders should wait for a confirmation pattern before taking aggressive trades in BTCUSD.
Check BTCUSD Chart on tradingview.