Bitcoin has been ranging on the daily chart. Yesterday’s daily candle came out as a bearish candle, but it did obey a level of support which has been obeyed by the daily candles twice. Thus, daily traders have to be patient to find a direction. Let’s have a look at the daily chart.
The Daily Chart
The arrowed candle closed within the support of its last candle’s support. However, it is a good looking bearish candle, thus any breakout at its lowest low may attract intraday sellers to go short. Today’s intraday price action has been choppy. Considering these factors, daily chart traders might have to wait to get a direction. Let’s flip over to the H4 chart to find out what that suggests.
The H4 Chart
The H4 chart shows that the level of 10260.55 has been a level of support from where the price had a bounce. It has been heading towards the North since. The level of 10710.45 may come as a level of resistance. If the level of 10710.45 is held by the H4 candles and it pushes the price towards the South and makes a breakout at the support level, the price would come towards the downside with good selling pressure. On the other hand, if the level of 10710.45 is breached, then the price would head towards the North. In both cases, traders have to wait for the price to make a breakout. Looking at the H4 price action, the breakout towards the downside is more possible. A breakout towards the downside would form a ‘Head and Shoulder’ pattern.
The Bottom Line
The daily and the H4 chart do not show any clear sign of its next direction. Traders must be patient to be able to find their entries. Traders’ patience is being tested. Thus, traders must make sure that they do not lose their patience to trade at Bitcoin.