Coinness BTC Technical Analysis August 26: BTC Sideways Near New Support Level - coinness.com

Both Bitcoin bulls and bears chose to lay low over the weekends, showing indecisiveness after the price recovered a bit in late last week.

On the daily chart, both 30 MA and 100 MA hovers above the trendline. The BTC price dances in and out above the 23.6% fib, but shows no intention to test the 38.2% fib at $6,870 in the short term. In contrast to the stable RSI reading, the Bollinger Bands are narrowing with the price touching the upper band in multiple attempts, speaking possibilities of an oscillating uptrend. The indicator MACD is moderated by the current modest trading volume.

However, on the 4-hour chart, the main line (DIFF) turns down and crosses below the signal line (DEA), forming a bearish crossover. The RSI reading reveals a overbought market, but the sentiment still requires more evidence to consolidate. The narrowing Bollinger Bands have lasted for a few days and may foreshadow a significant advance or decline. BTC has closed above above $6,483 for the past three days, and an upcoming volatility, if any, will test this new support level.

In conclusion, BTC saw an increase in price in the past few days, but the trading volume failed to synergize. If price follows a fluctuating uptrend, one reason is that the Bitcoin bulls encounter blockade to form a vigorous outbreak in a bear market, while it can also be seen as gathering strength for a future bounce back.

If today's close is above $6,870, the outlook remains bullish. If the close drops below the new support level at $6,483, the price is likely to experience another round of downtrend.