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Bitcoin Price Prediction: Too Much Noise In The Market

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Bitcoin Price Prediction: Too Much Noise In The Market
  • BTC/USD keeps trading inside its bullish scenario despite the falls
  • Too much noise in the market might generate an unnecessary anxiety in the inexpert traders

I'm still vacationing in paradise, but even here one can't avoid keeping an eye in the market. Bitcoin has continued its consolidation movement and, as of now, still trades inside the "normal" range of the charts.

Every day we read positive news for the Crypto market, with announcements from big platforms about the creation of regulated markets where Cryptos will be traded, the launch of new assets by the largest American Crypto provider (Coinbase), or the comments from an SEC official supporting the concession of licenses for Crypto ETFs.

But Cryptos are dipping... and I'm having "déjà vu" to the typical behavior of any market dominated by big banks, with their unmatched craft to direct the mood of the average trader. That's why we need to keep perspective and look closely at the charts.


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BTC/USD 4-hour chart

btc_usd060818-636691415447828007.png

Bitcoin is trading slightly above the $7000 mark after leaving relative lows yesterday below $6900. The last bearish leg has taken the price of Bitcoin below the moving averages in the 4-hour chart. It's the lower area of the big bearish channel that comes from June's lows and that still has some room to the downside without putting at risk the chart pattern.

Above the current price, the moving averages are enacting their magnetism and will likely push the price upwards. The key resistance levels are the ones already visited on the way down, with the $7200 price level (where we find the 200-SMA) and the price congestion resistance at $7400 where the 50-EMA will soon be. Above this level, the next one to break should be the $7600 mark and, as the last target, we should find the 100-SMA at $7725.

Below the current price, there are three main price congestion supports before the channel base, starting at the $6850 price level and a bit below at the $6750 mark. As the last price congestion support, we find the $6560 price level, very close to the baseline of the channel that goes by the $6500 level. Any movement inside these margins will not trigger any meaningful change of scenario, but it might offer some buying entry levels, with clear and close stops.

MACD in the 4-hour chart shows a bullish cross structure, after a "MACD failure" pattern. That doesn't mean that potential falls are out of the picture, but those should be quick and always divergent to the indicator.

Directional Movement Index in the 4-hour chart shows buyers gaining strength but still with some room to cover until reaching the level of the sellers, which are slowly diminishing their strength.

Conclusion

The most probable scenario is one with some days of positive tone for the BTC bulls before being resolved when buyers and sellers meet in the DMI indicator. It will probably get resolved with volatility and a bearish movement. That will require to re-analyze the market.

Posted-In: Bitcoin FXStreetCryptocurrency Forex Markets Best of Benzinga

 

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