Bitcoin News

Bitcoin Price Analysis: BTC/USD Consolidates Below $5800

Bitcoin price is trading in a range above $5500 against the US Dollar. BTC/USD has to break $5800 to gain upward momentum in the near term.

Key Talking Points

  • Bitcoin price after two attempts to break $5900 (data feed by Kraken) against the US Dollar
    started consolidating in a range.
  • There is a contracting triangle forming with support at $5520 on the 2-hour chart of BTC/USD.
  • The pair might trade inside the triangle before attempting an upside move above $5800.

Bitcoin Price Chart Analysis

The past few sessions were mostly ranging for bitcoin price below $5800 against the US Dollar. The price after failing twice to break the $5900 resistance started a short-term correction with mostly ranging moves.

There was a dip below the 23.6% Fibonacci retracement level of the last wave from the $4700 low to $5860 high, but the downside move was limited by $5450. Later, the price recovered and started trading in a range with support near $5500 and resistance at $5800.

Bitcoin Price Chart

It seems like there is a contracting triangle forming with support at $5520 on the 2-hour chart of BTC/USD. Below the triangle support, the 38.2% Fibonacci retracement level of the last wave from the $4700 low to $5860 high at $5423 is the next major support.

Furthermore, there is a crucial connecting bullish trend line forming with support at $5420. The same trend line is positioned near the 100 simple moving average (2-hour). Therefore, there are many supports on the downside starting with $5500 up to $5400.

Below $5400, the current bullish trend support is near the 50% Fibonacci retracement level of the last wave from the $4700 low to $5860 high at $5289.

To the topside, the triangle resistance is at $5780. A successful break above $5780-5800 could take the price towards the last high at $5860. It won’t be easy for buyers to push the price above $5800 considering the current market sentiment. If they succeed, the next stop could be around $5980-6000.

In the short term, BTC/USD will most likely trade in a range below $5800.

Trade safe traders and do not overtrade!

About author

Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets Reach Aayush via email: aayushjindal@ethereumworldnews.com
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