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.
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.