Bitcoin made an attempt to set a fresh record high earlier this week but retreated from the resistance once again.
Is BTC/USD in for sideways trading from here?
Check out these support and resistance zones I’m watching on the 4-hour chart:
Bitcoin (BTC/USD) 4-hour Forex Chart by TradingView
Bitcoin bulls have been charging in the past few days, taking BTC/USD back up to the highs near R1 ($108,633) before retreating sharply.
Price is inching close to the middle of its range and might be in for a test of the area of interest around $100K soon.
Will it bounce or break below this psychological barrier?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on bitcoin and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Keep your eyes peeled for potential reversal candlesticks that suggest a bounce off the area of interest near the pivot point level ($98,898) since this could be followed by another test of the range resistance or perhaps a break higher.
On the flip side, a move back below $100K could clear the way for a dip to the range support near S1 ($91,503), so look out for long red candles closing below the pivot point as well.
Note that the 100 SMA has crossed above the 200 SMA to hint that support is more likely to hold than to break and that these moving averages are close to the middle of the range to add to its strength as a potential floor.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
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