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Bitcoin (BTC) Prices Trade Sideways – Is This Make or Break for BTC?

Bitcoin (BTC) Prices Trade Sideways – Is This Make or Break for BTC?

Tammy Da Costa, Analyst

Bitcoin (BTC/USD) Talking Points

  • Bitcoin prices remain rangebound - 2017 high holds as critical resistance
  • BTC/USD threatens trendline resistance, but bears fight back
  • USD weakness boost stocks while cryptocurrency lag
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Bitcoin Technical Analysis

Bitcoin prices have continued to consolidate within a narrow range, formed by key technical levels of prior moves. With earnings season currently underway, resilient earnings from Goldman Sachs and a weaker US Dollar allowed major stock indices to hold gains, driving equity futures higher.

Although there has been a positive correlation (they generally move in the same direction) between stocks and cryptocurrency throughout the year, BTC/USD has remained constrained by technical resistance which continues to hold firm.

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With a broader range forming between 17,792 (the 78.6% Fib of the 2020 – 2021 move) and 20,500, the 19,666 has proven to be another big level for both the short and long-term move.

For those who may recall, this level was the prior all-time high that capped the upside move in December 2017 and again in December 2020. Now, almost two-years later and this level continues to hold bulls at bay.

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Bitcoin (BTC/USD) Weekly Chart

Chart, histogram  Description automatically generated

Chart prepared by Tammy Da Costa using TradingView

As bulls struggle to clear trendline resistance (from the 2021 high), the daily chart below further highlights the short-bodied candles that have been forming over recent weeks. With a tighter range forming between 18,183 and 19,666, a break of either side could fuel momentum, opening the door for a breakout.

Bitcoin (BTC/USD) Daily Chart

Graphical user interface, chart  Description automatically generated

Chart prepared by Tammy Da Costa using TradingView

However, with the above-mentioned range currently intact, the below levels may provide an additional catalyst for price action.

Bitcoin (BTC/USD) Key Levels

SupportResistance
18,183 (October low)19,666 (2017 High)
17,792 (78.6% retracement 2020 – 2021 move)20,500 (Psychological Resistance)
16,000 (Psych level)22,871 (September High)

Bitcoin Further Reading:

--- Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

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

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