Last week, we cited the unusual relative strength in Bitcoin and its decoupling from the S&P 500. Today we want to look at some other patterns.
The main thing standing out on the daily chart is BTCUSD’s consolidation in a key price zone between $13,880 and $12,920.54. That was the intraday range between the high and the close on June 26, 2019. (BTCUSD’s bear-market peak.) It’s the last clear resistance area below the December 2017 all-time high above $19,000.
Interestingly, prices are behaving totally different from June 2019. At that time, they swung wildly (sometimes more than $1,000 per day). BTCUSD was also unable to close near the top of that zone. This time, the range is very tight and closing prices have steadily inched higher.
It's resulted in an upward-sloping price channel. Is a breakout next?
The tight price action is even more evident on this four-hour chart, where the Bollinger Band Width is squeezing back below 5 percent. Most of BTCUSD’s moves follow compressions like this. Traders may want to be on guard for a potential breakout in the leading cryptocurrency.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
The main thing standing out on the daily chart is BTCUSD’s consolidation in a key price zone between $13,880 and $12,920.54. That was the intraday range between the high and the close on June 26, 2019. (BTCUSD’s bear-market peak.) It’s the last clear resistance area below the December 2017 all-time high above $19,000.
Interestingly, prices are behaving totally different from June 2019. At that time, they swung wildly (sometimes more than $1,000 per day). BTCUSD was also unable to close near the top of that zone. This time, the range is very tight and closing prices have steadily inched higher.
It's resulted in an upward-sloping price channel. Is a breakout next?
The tight price action is even more evident on this four-hour chart, where the Bollinger Band Width is squeezing back below 5 percent. Most of BTCUSD’s moves follow compressions like this. Traders may want to be on guard for a potential breakout in the leading cryptocurrency.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
