Bitcoin, BTCUSD, CryptoCompare chart

BTCUSD Medium-term Trend: Ranging

Resistance: $9,200, $9,150, $9,100

Support: $8,900, $8,950, $9,000

Yesterday, May 1, the BTCUSD pair traded between the resistance level at $9,500 and the support level at $9,000. We are waiting to see how the bulls will break the resistance level or to see how the bears will break the support level. Presently, Bitcoin is trading at $9,165.65 as at the time of writing.

From the weekly chart, price of Bitcoin has not changed significantly between yesterday’s and today’s business transactions. Nevertheless, traders may wish to hold on to their long trades above the $9,000 price level. In addition, they can put their stop loss below the support level at $8,500 because if price declines below the support level it will find support at $8,700.

Similarly, they can place their take profit near the resistance zone because if price does not rally above resistance level it may fall.  However, for breakout traders, if price breaks the resistance level at $9,000, a long order should be placed. And if it decides to break the support level, a short trade should be placed.

BTCUSD Short-term Trend: Ranging

Bitcoin, BTCUSD, CryptoCompare chart

In the daily chart, price of the asset is ranging and the price action is evenly apart between the resistance level and the support level. If the ranging market is ongoing we can adopt a range bound market strategy. That is if price gets to the resistance level, we will take short trades and our take profit (exit) near the support zone. On the other hand, if price gets to the support level, we will take long trades and our take profit (exit) near the resistance zone.

 

The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research