Posted In: Forex Trading Posted On: 2019/05/01 10:44 AM Posted By: ituglobal
The recent steady movement in Bitcoin price was as a result of low volatility in the course of the last five days of trading which had tightened trading between the range of $5100 and $5300. However, a surge in volatility is expected to determine the next ultimate direction of the giant crypto.
Resistance levels: $5600, $6000
Support levels: $4800, $4500
From the long-term perspective, we had seen how Bitcoin managed to crawl above the green trend-line before the notable spike in early April which has floated price above the $5000 level. After the sudden price increase, BTC has flagged up with steady movement in the channel.
Last Thursday, Bitcoin dropped to $5000 from the $5600 high level. Since then, the market has been trading below $5400 till this moment with choppy price action. While indecisive, we may experience another surge in volatility which could take Bitcoin to the next phase.
The RSI is currently indecisive. A downward direction may lead to a bearish breakout. Below the channel lies a tight range between $4800 and $4500. The 4-hours Stochastic RSI suggested BTC to be bearish.
After the April 2 sudden price surge, Bitcoin has remained in the ascending channel. Though, nothing much has changed since the leading cryptocurrency poised $5600, the current resistance. For the past five days now, Bitcoin’s volatility has been relatively low. As a result of this, the market appeared indecisive with choppy price action.
Sitting on the lower trend line, below the channel lies $4900 and $4700 support. On the upside, the market may retest $5500 and $5600 resistance levels, where the upper trend line lies. Above this channel, Bitcoin could create a new high around $5800 and $6000 levels.
The 4-hours RSI is rising above the 40 level. A further incline may project BTC price at $5500. Significantly, the 4-hours Stochastic RSI lies close to the overbought territory.
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