- Bitcoin price analysis gets confusing as pair is unable to break beyond Bollinger Bands
- BTC/USD is trading in a narrow range of $46,100 to $49,300
- Bulls unable to gather momentum as weekend volatility takes over
- Bearish Bitcoin price analysis suggests selling to intensify past $43,500 support
Bitcoin is currently stuck in a narrow range as the bears, and bulls weigh their options ahead of the weekend. The past week has gone without any breakout to either side since the $50,000 barrier has not been breached decisively. The fall below $48,000 has been fairly slow. At the time of writing, the price is trading near $46,000 support but the bulls appear to be on thin ice.
The short-term correction shows that Bitcoin price analysis isn’t yet clear of its direction. The future trajectory on the daily charts has also entered neutral territory since the past week has been fairly uneventful. However, the weekly bias is still pointing towards a retest of the $54,000 highs albeit some correction is in the store before that happens.
The downfall from $52,000 to the current low of $46,100 shows that bears are slowly gaining ground. Earlier this week, the U.S. Federal Reserve’s Chairman Jerome Powell announced that the monetary policy will remain steady without any further cuts in the near future. The comments weren’t taken positively by the world markets and the downfall in traditional indices was swift. Subsequently, the crypto realm also reacted negatively.
Bitcoin price movement in the last 24 hours: Thin weekend liquidity challenges support levels
The Fed comments are sure to reverberate for a few more days as the traders decipher upcoming challenges. The economic conditions are sure to affect the Bitcoin price analysis in the coming days. In the last 24 hours, the price action has been reminiscent of the recent consolidation periods but the range is far narrower.
There is also a possibility that BTC’s safe-haven credentials may come into play. It can result in a bounce to the higher side provided the $46,100 support holds well. The BTC/USD pair has made a sharp move downwards to $45,300 but the recovery was swift, and the price rallied to $46,110 support.
Bulls must take the price beyond $48,500 resistance at the close of the day to target higher levels. Sufficient liquidity might be in short supply as the weekend trading consists of low volumes. Yesterday’s breakout above $48,000 was short lived. Successive failures above $48,000 will trigger a bear run that may extend towards $45,000 level.
BTC/USD 4-hour chart: Doji candles show indecision amongst traders
The long-term weekly Bollinger Bands range has risen to touch $40,000 but the hourly candles are painting a confusing picture. The 4-hour chart is more or less rangebound with the price testing extreme ends of the Bollinger Bands. The Doji Candles further show that the traders aren’t willing to take large positions before the chart clears the future direction.
The .618 Fibonacci retracement of the all-time highs at $52,478 was missed last week. The price rose to $50,640 level which is close to the .5 Fibonacci retracement. Thus, there are attempts being made by the bulls to retake the higher price levels but they are not getting any success.
Currently, the Bitcoin price analysis will revolve around the .382 Fibonacci retracement level at $47,100 where bulls might attempt consolidation. The pivot point at $46,296 can prove vital for the buyers if they want to target higher levels. The RSI is at 46 and biased downwards. The MACD is nowhere close to a crossover which shows that the bears have the upper hand on the hourly charts.
Bitcoin price analysis conclusion: Recovery may fuel a bull run
Moving forward, Bitcoin price analysis shows that that first resistance at $47,200 will pave the way for the bulls. On the downside, the support at $45,500 and $44,700 must hold if the current phase is to turn into a consolidation.
Traders and investors must also keep a keen eye on any more comments from the Federal Reserve and other central banks. The conventional markets are also on an edge, and any untoward movement can impact Bitcoin and altcoins.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.