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Bitcoin (BTC) Price Battles Recent Highs as Technical Indicators Clash

Bitcoin (BTC) Price Battles Recent Highs as Technical Indicators Clash

Nick Cawley, Strategist

Bitcoin (BTC) News, Price, Chart and Analysis:

  • Bitcoin primed to make a move as trading range narrows further.
  • Medium-term lower highs meet short-term higher lows

Q3 2019 Forecasts and Top Trading Opportunities

Bitcoin’s Narrow Trading Range Likely to Break Soon

The chart below shows Bitcoin sitting in a tight trading range today with little news flow around to give the price a nudge, one way or another. The recent $1,300 rebound of the August 29 low at $9,370 has run out of steam just below $11,000 and needs a convincing break and close above this level for the recent bullish momentum to re-start. The chart also shows that the series of lower highs starting on June 26 remain intact, while a series of shorter-term higher lows off the August 29 low print also remain in place, suggesting a technical breakout nears.

To the downside, support remains around $9,3000 to $9,080 and this area should hold for now, while to the upside the previously mentioned $11,000 level would open a re-test of the August 6 high at $12,311.

A Guide to Day Trading Bitcoin and Other Cryptocurrencies

Bitcoin Daily Price Chart (April – September 5, 2019)

Bitcoin (BTC) Price Battles Recent Highs as Technical Indicators Clash

IG Client Sentiment data show that 79.1% of retail traders are net-long Bitcoin (BTC), a bearish contrarian indicator. However, recent daily and weekly positional changes suggest that Bitcoin could soon reverse higher.

Bitcoin Market Dominance Continues to Grow

Bitcoin’s dominance of the cryptocurrency space continues and is currently at 70%, a level last seen nearly six months ago. While recent Bitcoin sell-offs have provided bullish traders with a lower level to get in the market, the rest of the cryptocurrency market is struggling to push higher with rallies attracting sellers.

Bitcoin (BTC) Price Battles Recent Highs as Technical Indicators Clash

Chart via CoinMarketCap

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on Bitcoin – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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