To the frustration of many a Bitcoin Bull, BTC has been trading within a very tight range for over three weeks now. The range being a bit of a narrow chop between the $9100 and $9300 price levels. While many investors and traders in the crypto space eagerly await the coming Bitcoin breakout, the state of indecision has left many to wonder which direction Bitcoin prices will head next.
Indecision as an indicator
When it comes to the crypto market space, all eyes are usually on Bitcoin first as its performance can indicate broad investor sentiment across the range of cryptocurrency assets. Bitcoin is by far the largest cryptocurrency in terms of market cap and popularity which is yet another reason for the coin to get so much attention in times of market uncertainty.
At the moment, Bitcoin is trading at the low end of its three week range but there are a few important indicators showing up on both the daily and hourly charts that suggest an upward push could be coming in the next few days or weeks.
One the daily chart, the current $9100 price target is well above the 200-period Moving Average ($8535 at the time of press). Traditionally, the 200-period MA is an important level of either support or resistance that is well respected by traders and investors alike. The fact the BTC is still trading above that level is a bullish sign. That said, there is still plenty of room for a test of that support level so things could go south before returning to the expected upward trajectory. Another important indicator showing up on the daily chart is the 13-period MA making a bullish crossover with the 30-period MA.
Despite the bullish signs offered up by the moving averages, momentum indicators point to more of the same, at least for the time being. Both the MACD and the RSI are showing relatively weak interest in either direction. The MACD is hovering around zero and the RSI around 50%.
Looking at the hourly chart, the situation with the moving averages paints a slightly different picture. The 13-period is holding a steady line above the 30-period MA and both are moving to higher prices overall. Prices are now consolidating just under the 200-period MA which is acting as a short-term price ceiling for BTC. So far, investors have respected the level as resistance, but it is beginning to look like hourly candles will start to punch through very soon. Should the 13-period cross down and through the 30-period more downside would be expected, but for now that doesn’t seem to be the case.
As with the daily chart, there is still some reason to reign in any strong bullish bias for Bitcoin. The RSI is indicating that BTC is edging towards oversold levels and the MACD is showing a significant push and pull between buyers and sellers.
With such a state of indecision in the Bitcoin market, it is no wonder that so many investors and traders are currently sitting on the sidelines waiting for BTC to pick a direction.
Although there is certainly a state of indecision involved with Bitcoin prices, there is still plenty of room for a bullish bias for Bitcoin – the problem is that no one knows when exactly a move will be made. There is still growing interest in Bitcoin from the institutional side that has strengthened the coin in many ways. There is also increasing action on the crypto derivative front that also serves as confirmation that Bitcoin is on solid ground. The disconnect between the fundamental and technical reasons for forming a directional bias for the coin makes it hard to trade BTC for a profit at the moment (unless you are buying and selling options, of course), but when Bitcoin finally makes its move it’ll likely be a sharp turn north.