Bitcoin price analysis: Why BTC/USD needs to consolidate the gains?
|- Bitcoin remains relatively bullish amid the calls for consolidation.
- The immediate upside is hampered by the 50 SMA and the resistance at $9,500.
Bitcoin price was extremely volatile towards the end of last week. While the volatility led to a resurface above $10,500 on some cryptocurrency exchanges, it also caused a breakdown back to $9,000. Besides, the recovery attempt to break past $10,000 resistance failed on Monday.
The price action is relatively bullish on Tuesday as Bitcoin opened the trading session at $9,221 and touched a high of $9,317. Although the crypto also corrected lower to $9,210 (intraday low), it has adjusted to the last price of $9,283.
Bitcoin price is entering an important phase of consolidation between $9,000 and $9,500. This is essential in order to establish key support areas and gather strength to assault higher resistance zones. The immediate upside is capped by the 50 Simple Moving average on the one-hour chart while the 100 SMA is in line to provide support at $9,000.
The Moving Average Convergence Divergence (MACD) has settled into a horizontal movement around the mean line (0.00). This shows the tendency of the price to trend sideways. Besides, the Relative Strength Index (RSI) is ranging at 44. Both of these indicators put a lot of emphasis on a possible long-lasting sideways trading trend.
BTC/USD one-hour chart
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