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While forecasters are predicting a rise in bitcoin prices for 2019, crypto-currency must first tackle strong short-term technical barriers.
It is increasingly difficult for bitcoin bulls to initiate a substantial step toward the $ 3,480 barrier and beyond. At the same time, their presence in the support zone above $ 3,371 prevents the price from taking further downward measures. The situation has caused Bitcoin to remain in the range, which reinforces the bearish sentiment in the short term.
At the intraday / weekly level, Bitcoin could now launch another sales action thanks to two pressing problems: reduced volatility and volume. Let's discuss it in the sections as follows.
Bitcoin Awards In January Deja Vu
Bitcoin mimics some price action between January 26th and 27th. At the time, he was evolving inside a triangle. When the model expanded and the trading range began to shrink, the volume also began to decline. At the same time, the spread between the upper and lower Bollinger bands, which is directly proportional to the volatility of an badet, has also begun to decrease. On January 28, the price of bitcoin broke down compared to the triangle.
BITCOIN (BTC / USD) TABLE 1H | SOURCE: COINBASE, TRADINGVIEW.COM
In the current trading range, the bitcoin chart expresses a similar feeling of trend. The price is changing within a new triangle as the gap and hourly volume of the Bollinger Bands are decreasing. Bitcoin, like the previous time, broke above the channel support to form a higher vertex towards the resistance of a decreasing mid-term wedge pattern (indicated by a decreasing dotted line). And he returned to the triangle channel – as in the case of the first triangle.
If we believe the scenario, the bitcoin price could test the resistance of the channel again, but only to follow a withdrawal action towards the support of the channel. After that, the price could continue to consolidate inside the channel or try a ventilation in case of fall of the support.
Corner fall
Technically, a downward corner configuration is a bullish indicator. It begins roughly at the top, but narrows as the badet decreases, while forming reaction peaks and converging depressions. As it approaches the top of the cone, the badet experiences a break in resistance to find a new support zone.
BITCOIN (BTC / USD) TABLE 1D | SOURCE: COINBASE, TRADINGVIEW.COM
The price of bitcoin is similar to the top of its free fall corner. It should burst upward under ideal circumstances, but given the volatile nature of the market, a break is also possible. The latter is likely to reduce the price to $ 3,100, the lowest level on the market.
Intraday strategy
Keeping trade inside the triangular channel seems ideal right now. That said, entering a long position with respect to resistance after withdrawal of support would yield small benefits. At the same time, maintaining a stop loss order at a pip below the low swing would minimize losses in the event of reversal of the trend.
In the same way, a reversal of resistance would open a decent short chance of support, provided that a stop 1 glitch over the top local swing is set to maintain the overall risks.
Featured image of Shutterstock. TradingView Charts.
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