Bitcoin has been trading within $7300-$7500 range for too long now. Bitcoin breakout from $6800 on 17th July and since then we have been consolidating among the above price range. Bitcoin dominance has been rising though, but trading volume has gone much lower, which is concerning. We may either fall back to $7000 range or we can smash the $7800 resistance.
So, what is more likely to happen?
Is Bitcoin going Bullish or Bearish?
Let's find out with the help of Chart:
As you can see in the chart above, Bitcoin has been trading above $7300 for last two days and the whole consolidation has been happening for last 5 days. This pattern is too much long for a Bull flag, so calling it a consolidation is right.
Now, the possible scenarios of Bitcoin are as follows:
- If Bitcoin continues to rise at the current pace and this much Bullishness, next resistance which it will face is : $7800 which is a high resistance zone.
- If it fails to break that resistance then, Bitcoin will come back to $7300 range.
- If Bitcoin start pulling back from current level, then next line of support would be $7100 and then $6900 as 0.236 and 0.382 Fib levels are there.
- There's a highly likely chance that Bitcoin can smash the resistance and continue to rise above. If it does so, the next Bitcoin target would be $8500.
- Currently, the trading range in which BTC is trading is highly risky to trade and should be avoided.
If you're to open any trade, the please wait for some Bullish or Bearish signs first or open a trade on Breakouts either upside or downside.
Thanks for reading ....!!