Home Daily Analysis Crypto Market sentiment Bitcoin: Got Caught Within a Horizontal Range

Bitcoin: Got Caught Within a Horizontal Range

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Bitcoin after hitting 12000.00 area seems to have a consolidation on the daily chart. The level of resistance is getting stronger. However, the sellers may have to wait to get a strong daily bearish candle to go short on Bitcoin as far as the daily chart is concerned. On the other hand, the buyers have been waiting for a bullish daily candle breaching the resistance level to go long again on Bitcoin. This is what is called “anybody’s game”.

Let us have a look at the Bitcoin- daily chart.

The Daily Chart

The daily chart’s price action shows that after breaching the neckline of the double bottom, the price was heading towards the North. It reached at 12000.00 area and started having consolidation. Today’s intraday price action has slightly biased with the bull. The buyers would love to see that today’s candle closes above the resistance level. On the other hand, if an engulfing bearish daily candle is produced at the resistance level, the sellers will go short to grab some green pips.

Let us now have a look at the H4-Bitcoin chart.

The H4 Chart

The H4 chart’s price action shows a very similar picture, but the picture is clearer here. The price gets caught within that horizontal range. Neither the buyers nor the sellers have control of any sort. An upside H4 breakout at the level of 12092.90 may attract the buyers to go long, and a downside H4 breakout at the level of 11376.95 may attract the sellers to go short on Bitcoin.

The Bottom Line

As things stand both on the H4 and the daily chart, traders must wait for the price to make a breakout before taking a trading decision.  It could go either way. Thus, there is no point of anticipating. Let the price to take a direction first and trade accordingly.

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