Bitcoin Price Analysis: Weak Rally Gives BTC Another Chance At Support Test

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It took only a few minutes for the news revealed by the SEC regarding its classification of Bitcoin and Ether as non securities to impact crypto markets. Investors were refreshed as everyone enjoyed a bounce in prices. Before the news came to light, Bitcoin was struggling to find buyers and even went on to record a low of 6,100 USD. However, as the SEC made the announcement a modest rally ensued.

Bitcoin’s price recovered. Note that Bitcoin’s price declined by about 18 percent before the SEC news. Market experts believe that Bitcoin’s recovery should more glaring from next week. We will keep this in mind during today’s Bitcoin price analysis. Let’s see if Bitcoin offers any opportunities.

BTC/USD Price Analysis

Bitcoin has always managed to rebound swiftly from the oversold thresholds on the RSI in recent years. However, this streak broke following the most recent rebound from 7,106 USD back in May 29 could rally to just 7,755.61 USD. Hence, traders have to avoid making long positions only on the RSI signal.

Some crypto analysts have been advocating a downtrend for Bitcoin. However, it is safe to say that Bitcoin is likely going to remain range bound and will be have a of 6,075.04 USD. The digital currency hasn’t broken down into the intraday lows recorded on February 06. The moving averages have crisscrossed each other more frequently, which is proof that the pattern isn’t going down but is indeed range bound.

Thus the best recommendations for trade a range according to the chart is to buy when prices are at the downside of the spectrum. An added filter has been introduced to boost your safety. Since this year began, a break out from the 20-day EMA was always an excellent opportunity for short-term trading. If history is to be repeated and the BTC/USD pair initiates a rally, we recommend buying once it breaks and stays above the 20-day chart with overhead resistance at 7,755.61 USD, 8,566.4 USD and 8,888 USD.

 

 

 

 

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.

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