BTCUSD Medium-term Trend: Ranging
Resistance: $7,650, $7,700, $7,750
Support: $7,550, $7,500, $7,450
Yesterday, 5 June, the Bitcoin price was in a ranging market. The asset has been ranging between $7,800 and $7,000 since 23 May. It was assumed that the asset might continue with its range-bound movement until a possible breakout occurs. The asset is currently trading at $7,616.21. However, the Bitcoin price is still fluctuating within the range-bound zone of the asset.
For the price to reach the $8,000 and $8,500 highs, it must break the resistance levels at $7,650, $7,700 and $7,750. Nevertheless, any time the price tests those levels, the bulls would be resisted. As a trader, you can place a short trade when the price tests those levels and put a stop loss above the resistance level. Then you can exit your trade when the price gets to the support level.
Similarly, if the price tests the support level, you should place a long trade and a stop loss below the support level. Then you exit your trade at the resistance zone. The stop loss placement will take care of your account when there is a sudden price breakout. Meanwhile, relative strength index period 14 is level 48 indicating that the price is in the range bound zone.
BTCUSD Short-term Trend: Ranging
On the daily chart, the asset price is in a range-bound movement. The chart shows that the asset had a bullish movement which took the price to $7,600; later it started its range-bound movement.
The views and opinions expressed here do not reflect that of BitcoinExhangeGuide.com and do not constitute financial advice. Always do your own research.