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Bitcoin: Traders to Wait to Find a Direction

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Bitcoin has been within a range on the daily chart since last Thursday’s strong bearish move. The price was heading towards the North with strong momentum. The buyers were getting for another upside breakout to go long again. No upside breakout took place. The price rather came down with strong bearish momentum. In the end, it produced an engulfing daily candle. The candle has sent a strong message to the buyers and it has held them back to keep buying Bitcoin as they had been doing. On the contrary, the sellers are not confident enough to go short based on the daily chart. They must wait for either a double top or pullback to go short on Bitcoin.

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

The Daily Chart

The level of 10,345.20 is the level of support which has been held by the daily candles. It has already produced a bullish inside bar as well. The price has been bearish again towards the level. If the level is breached by a daily candle, then the sellers will dominate in Bitcoin. On the other hand, if the level is held and it ends up producing a daily bullish reversal candle, the price would head towards the North again. Let us have a look at the H4 chart and find out what that says about the price’s next move.

The H4 Chart

The level of 10,345.20 may end up being a level of support of a double bottom as far as the H4 chart is concerned. The level is to be held and makes a breakout at the neckline, thus it is still a long way to go. On the other hand, any breakout towards the downside will attract the sellers to go short straightaway.

The Bottom Line

Since the daily chart is in a range, thus the other charts such as H4, H1 may play a vital role here. The H4 chart shows that the sellers might have an upper hand than the buyers to some extent.

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