The last 24 hours has seen Bitcoin stay below $4000. The crypto was trading in a range bound behavior in a market that seemed to lack any momentum. Support was at $3974 and resistance levels seemed to be at the $4000 mark.
This period started with three black crows candlestick formation that brought the price below $4000. This seemed to seal the fate of BTC, at least in the short term as it has struggled to rise above $4000. Sideways trading has dominated the market since then. Later in the last few hours, the bulls tried to rally the price past to $4000, which was achieved temporarily before a bearish engulfing brought the price tumbling right back down.
The Moving Averages seemed intertwined in the last few hours. The RSI has been oscillating within the 40-60 range seemingly signifying that the market lacks any strength for a rally.
Moving forward, the RSI seems pointed towards 30. The 21 day MA also seems to be gaining strength and crossing over the 7 day MA. This signals that we should expect a further dip in price and the market can expect lower lows in the short term.
Resistance levels can be placed at $4000 as new support levels are defined. We expect the new support levels to be placed at $3950 with resistance at $3990.
Traders can take a short position once the price pulls back from the resistance region ($3990-$4000).Traders can go long if the price bounces back from the envisaged support levels ($3950).
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.