BTC Bears Tighten The Grip, Bulls Ready To Strike Back

BTC/USD 4-hour chart

(Click on image to enlarge)

On the 1-hour chart, the short-term price movements are limited by SMA50 on approach to $10,400 and SMA200 at $10,250, which confirms the range-bound state of the market. However, the Golden Cross that has transpired on this time frame is a distinct bullish signal. The Golden Cross is a situation when a short-term SMA crosses the long-term SMA from the downside.

BTC/USD 1-hour chart

(Click on image to enlarge)

To conclude: BTC/USD is locked in a tight range and may continue moving sideways for the time being as there area substantial technical and fundamental barriers both on above and below the current price. The short-term indicators imply that BTC/USD may be ready for an extended recovery; however, this signal should be confirmed by a sustainable move above $10,500-$10,600. Once this happens, $11,000 will come into focus. On the other hand, a failure to clear the upside barrier will push the price towards the lower boundary of the range of $10,000, which is strong enough to slow down the decline and create another bullish impulse. Otherwise, the sell-off will continue towards the long-term correction target at $9,000.

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Disclosure: Information on this article contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational ...

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