Bitcoin has been consolidating for almost 4 days now which is quite strange as Bitcoin doesn't trade within a narrow price range for this long. Price has been holding way over $7300 and trading within $7300-$7500 range since last 4 days.
Coin market capitalisation has slightly gone down to $285 Billion while Bitcoin dominance has also decreased to 45.1%
The average daily volume has come down to $12 Billion. So, is this concerning?
Are we going Bullish or Bearish in next few days?
Well, let's have a look at chart below to understand the possible scenarios:
As you can see in the chart, we have been trading very Bullish for quite some time and because of this, RSI levels has gone overbought. This means buyers power got exhausted and a pullback is expected. And we did see some pullback to $7270 price level and since then we've been trading in $7300-$7500 range.
Now, possible scenarios are as follows:
- We could see a pull back further to $7100 level but this is highly unlikely as Bitcoin has been holding above $7300 for too long and Bulls still haven't lost momentum.
- On the upside, we can test again $7800 level as we tested yesterday. There's a strong resistance there as well as 0.5 Fib level as well. If we broke that resistance, then we can shoot way above $8000 level or else we can get back to $7500 again.
- Volume is decreasing slowly which signifies that a Bull break may be coming in next few hours or days.
- StochRSI has showing some weakness now and on the basis of it, we could see some kind of pull back in Bitcoin.
So, if you're trading then please use caution as current scenario is not good for trading or it can be highly risky.
Thanks for reading ..!!