Since 8th of September Bitcoin has been steadily rising producing higher highs and higher lows, while bouncing off the uptrend trendline. However, on the 28th of September BTC/USD failed to break above the previous high and rejected the 50% Fibonacci retracement level for the second time.
Clearly, the resistance has been formed near USD 6,800, but at the same price continues to bounce off the uptrend trendline. Its not a surprise to see price consolidating once again, considering overall cryptocurrency market indecision.
The question remains, what to expect next from Bitcoin? Where and when to buy?
It seems to be reasonable to make these decisions based on the price activity, occurring under the heavy trading volumes. While the current trade volume is very low, in the past it has been increasing the most when Bitcoin was trading at $6420 price level. This level also corresponds to the 23.6% Fibonacci retracement and still acting as a strong support.
The probability that price will get back to this level is high, especially after BTC produced a double top at $6760. Bitcoin might decline towards $6420 - $6260 area unless the recent high at $6.6k is broken.
Traders and investors are likely to pay attention to the $6200 area, looking for a buying opportunity. Although to consider buying the Bitcoin, price clearly has to either reject one of the support level or produce a new higher high, breaking and closing above the $6823.
To finalize, BTC/USD doesn’t have an established direction for the short and medium turn. The buying opportunity might present itself near $6200, although this could be a risky purchase. On the other hand, breakout approach seems to be a safer way to go. To confirm the decision, one could check the RSI oscillator for the triangle breakout, along with the resistance breakout and high trade volume.
Support:
1. $6420
2. $6266
3. $6116
4. $6000
Resistance:
1. $6600
2. $6760
3. $7420
Clearly, the resistance has been formed near USD 6,800, but at the same price continues to bounce off the uptrend trendline. Its not a surprise to see price consolidating once again, considering overall cryptocurrency market indecision.
The question remains, what to expect next from Bitcoin? Where and when to buy?
It seems to be reasonable to make these decisions based on the price activity, occurring under the heavy trading volumes. While the current trade volume is very low, in the past it has been increasing the most when Bitcoin was trading at $6420 price level. This level also corresponds to the 23.6% Fibonacci retracement and still acting as a strong support.
The probability that price will get back to this level is high, especially after BTC produced a double top at $6760. Bitcoin might decline towards $6420 - $6260 area unless the recent high at $6.6k is broken.
Traders and investors are likely to pay attention to the $6200 area, looking for a buying opportunity. Although to consider buying the Bitcoin, price clearly has to either reject one of the support level or produce a new higher high, breaking and closing above the $6823.
To finalize, BTC/USD doesn’t have an established direction for the short and medium turn. The buying opportunity might present itself near $6200, although this could be a risky purchase. On the other hand, breakout approach seems to be a safer way to go. To confirm the decision, one could check the RSI oscillator for the triangle breakout, along with the resistance breakout and high trade volume.
Support:
1. $6420
2. $6266
3. $6116
4. $6000
Resistance:
1. $6600
2. $6760
3. $7420
Comment:
Bitcoin falling towards the support area
Trade closed: target reached