Kataryna Habeliia August 28, 2020
After a failed attempt to keep profits above $11,500, the price of bitcoin is now hovering below $11,500. It is impressive, however, that after the recent downturn with $11,100 testing, the largest cryptocurrency is holding at around $11,400.
BTC/USD’s upside is capped at 50 Fibonacci retracement level, taken between the last high of $12488 and the low of $10,542. There is also a descending resistance line on the way of movement.
Since reaching a high of $12,488 (a record high in 2020), the trendline has continued to monitor the decline in Bitcoin’s value. Staggered trading caused Bitcoin to break its upward momentum for a consistent downtrend.
Based on the technical levels observed in the 4-hour range, sideways trading prevails and is likely to continue further. The relative strength index confirms the idea of consolidation with its leveling movement at 44.56. This followed recovery from around 30 levels (reminiscent of a drop to $11100).
As long as RSI is at its current level, BTC consolidation will take precedence. However, it is important to keep an eye on the direction of the indicator, as a break above 50 would signal to strengthen bullish grip and growing upside potential to $12,000.
The MACD indicator is stuck in the negative area, confirming that sideways trading will linger in the market. The same indicator can help highlight the direction in which Bitcoin will go after sideways trading. For now, keeping the support level above $ 11,400 remains key for the Bitcoin bulls as it allows them to gain strength before they make another attempt to overcome the $12,000 resistance.
Daily Bitcoin levels
- Spot Rate: $11,440
- Relative change: -31
- Percentage change: -0.27%
- Trend: Consolidation bias
- Volatility: low
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