Bitcoin Price Analysis: BTC/USD Still In Pullback Mode?


Bitcoin is still trending lower inside the descending channel on the 1-hour time frame but buyers continue to defend support levels. This could keep the correction going until price makes new lows.

TheĀ price is currently testing the dynamic resistance at the 100 SMA dynamic inflection point. This is near the 38.2% Fibonacci retracement level and if it holds as a ceiling, the price could resume the slide to the swing low at $3,407 or the bottom of the channel.

A larger correction could last until the 50% to 61.8% levels that line up with the channel resistance. The 200 SMA dynamic inflection point just above it could also keep gains in check, but a break above it could confirm that a reversal is happening.

RSI is heading north and has some ground to cover before hitting the overbought zone. This means that buyers could stay in control for a bit longer before taking a break. Stochastic is also moving up but is closer to the overbought zone to indicate that buyers might be exhausted soon. Turning lower could mean that sellers are ready to return.

BTC/USD Chart - TradingView

Bitcoin is undergoing lower volatility these days and many blame this on the Chinese market holidays. Volumes could pick up as more traders return to their desks in the coming trading week or even over the weekend.

Developments have been minor but mostly positive. For one, there’s the shift in stance from a formerly downbeat JPMorgan analyst who pointed to the surge in institutional investments this year as one of the primary factors for a possible price rally.

Reports are also indicating all-time highs in trading, with showing that daily Bitcoin volumeĀ has been recently increasing to the levels not seen since January 2018. One of the factors that may have boosted volumes is the ongoing crisis in Venezuela.

Images courtesy of TradingView


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