Bitcoin Going Sideways But For How Long?
Bitcoin is no doubt trading sideways since last 48 hours after the major drop. Currently it is trading above $5400 but the volume is declining as we speak and a break is imminent.
Sideways trading is going on but the main question is: For how long?
What the probabilities of either side of Bitcoin breakout?
Let's have a look at the chart to understand all the possibilities:
As we can see in the chart above, Bitcoin is currently trading above $5400 which is good support level. Next support level would be $5200, $5000 and $4800.
But if we look at the RSI levels, they're pretty Oversold, indicating a short-term bounce back in Bitcoin. This Bounce back can go to .618 RSI level as you can see in the chart which arrives around $5900. Although, 0.5 RSI level is also indicating a great resistance, which is around $5750 (previous good support and now good resistance level for Bitcoin).
Volume is declining as we speak. Weekend is going on and this gives the control into the hands of HFT and not human traders.
So, wait for the trend to shift a little and then only enter any trading position. Currently, there's more probability to have a bounce back rather than a dump to the downside.
Trade with caution and use stop loss.
Thanks for reading .!