Bitcoin prices trade sideways – is this make or break for BTC?
Bitcoin prices remain rangebound - 2017 high holds as critical resistance; BTC/USD threatens trendline resistance, but bears fight back and USD weakness boost stocks while cryptocurrency lags.
Bitcoin technical analysis
Bitcoin prices have continued to consolidate within a narrow range, formed by key technical levels of prior moves. With earnings season currently underway, resilient earnings from Goldman Sachs and a weaker US dollar allowed major stock indices to hold gains, driving equity futures higher.
Although there has been a positive correlation (they generally move in the same direction) between stocks and cryptocurrency throughout the year, BTC/USD has remained constrained by technical resistance which continues to hold firm.
With a broader range forming between 17,792 (the 78.6% Fib of the 2020 – 2021 move) and 20,500, the 19,666 has proven to be another big level for both the short and long-term move.
For those who may recall, this level was the prior all-time high that capped the upside move in December 2017 and then again in December 2020. Now, almost two-years later and this level continues to hold bulls at bay.
Range fundamentals
Bitcoin (BTC/USD) weekly chart
As bulls struggle to clear trendline resistance (from the 2021 high), the daily chart below further highlights the short-bodied candles that have been forming over recent weeks. With a tighter range forming between 18,183 (support that has held since June) and 19,666, a break of either side could fuel momentum, opening the door for a breakout.
Bitcoin (BTC/USD) daily chart
However, with the above-mentioned range currently intact, the below levels may provide an additional catalyst for price action.
Bitcoin (BTC/USD) key levels
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
