Bitcoin Price Analysis: Three bearish factors that limit BTC/USD recovery in the short run
- BTC/USD locked in a tight range amid market indecision.
- A strong move above $6,300 is needed for the recovery to gain traction.
Bitcoin (BTC) has spend the recent 24 hours oscillating in a tight range. At the time of writing, BTC/USD is changing hands at $6,220, mostly unchanged both on a day-to-day basis and since the beginning of Sunday. The short-term trend remains bullish amid low volatility.
BTC/USD: Technical picture
BTC/USD has been locked in a tight range since the sell-off on Saturday morning. The first digital coin recovered from the recent low close to critical $6,000, but the upside momentum failed to gain traction. While the longer-term picture is still bullish, there are several factors that prevent Bitcoin from developing a sustainable recovery.
First, a way to the North is blocked by a strong resistance at $6,300. This area slowed down the recovery after the collapse to $3,386 in the middle of March and stopped the bulls on Saturday. Notably, according to the data, provided by Intotheblock, there are over 700,000 Bitcoin addresses that have their break-even point in the area from $6,170 to $6,350. This factor adds strengths to this resistance.
Second, the intraday RSI points downwards, which means that bearish sentiments are still predominant in the short-run.
Finally, a flattened out volatility slows down the market and indicates that traders need some time to decide on the next move. A tight consolidation during the weekend may also mean that we may witness sharp moves on Monday morning, on the opening of the traditional markets in Asia.
BTC/USD 30-min chart
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Author
Tanya Abrosimova
Independent Analyst
