What To Expect As Bitcoin Stabilizes Against The Dollar
The developments are raising optimism that another bullish might happen soon.
Analyzing Bitcoin/Dollar Performance
Bitcoin registered some impressive results on Friday against the US dollar. The largest crypto registered a 0.21% rise against the dollar, to continue with the surge witnessed on Thursday. At the start of trading, Bitcoin exchanged with the dollar at $6590. By press time, bitcoin was around $6593. The pair has experienced an impressive change when the Bitcoin price went back to $6500 which served as the psychological backing. Bitcoin’s upward surge was capped by a firm resistance level which stood at around $6627. The sideways stability provides sufficient chances for investors to trade at impressive profit margins.
Bitcoin’s price action is currently being held by the halfway term triangle pattern. At the moment we have not seen a major breakthrough even though the pair is shifting upwards. On lower timeframe, Bitcoin and the dollar are hovering around the 100 and 200H SMAs. Both RSI and Stochastic are within the buying segment with needs looking north.
A bullish run might be around the corner if the pair ends the day over the upper trendline of the current triangle. The bears might be favored in case the sell-off near the 38.2% Fibonacci retracement of the previous swings is achieved. We also have a chance that the pair might reset to under $6000 if we consider the long-term trend.
Investors should not put a lot of attention about the price movement. However, they should focus on the implication of the present sideways trend. At the moment we can only examine the levels to view on Friday.
The over trendline of triangle formation will play the role of the temporary resistance level. In case Bitcoin’s price moves over the $6627 mark, then a breakthrough will be witnessed. In case a real breakthrough is not witnessed, then a fake breakout sign just over the short term resistance level will have established an extended position heading to $6627 mark. The risk will further be explained by a stop loss just under the entry mark.
In the event the mark breaks the $6627, then we can be sure of a near bullish bias level. It will give way to an extended position in the direction of $6660 mark from the short term resistance.