Bitcoin continues to trade in range-bound mode with the BTCUSD still facing stiff resistance at the 9350 price area (38.2% Fibonacci resistance level).
So far, the surge from 7283 which negated the measured move from the symmetrical triangle’s downside breakout has abated, leaving Bitcoin bulls to wonder what is next for the beleaguered coin. The price cap formed by last week’s move was capped at 9914, but BTCUSD has found it hard to attain these levels since.
The weekly candle continues to be capped at the 9914 price level, which is where the previous weekly high of June 16 was found. Previous highs close to that area were also found on March 11 and April 23, both in 2018. These all solidify this price level as the near-term resistance to beat.
Further resistance levels continue to be found at 10,900 (18 August and 1 September weekly candle highs) and also at the 50% Fibonacci retracement price level of 11,300. The 9914 resistance must be broken decisively for price to be able to push towards 10,900 and 11,300.
In the near-term, price continues to hover around the 9,200 mark, which is close to previous lows of the candles that formed the descending triangle. This may form immediate price support for a spring towards 9914, or may be the barrier which has to be broken for price to attempt a push to 8289.
However, the long-term bias continues to remain bearish, with support seen at the recently broken resistance level of 8289. This price level represents previous highs of May 12 and October 13, which will act in role reversal if price approaches these levels (i.e. previous resistance now functioning as support).
We would expect a decisive break of 8289 to the downside to push open the door for price to target the established support level of 7707 (previous lows on the weekly candles of September 22/29 and October 6).Download our latest quarterly market outlookfor our longer-term trade ideas.
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