BTCUSD Medium-term Trend: Ranging
Resistance levels: $6,500, $6,600, $6,700
Support levels: $6,300, $6,200, $6,100
Yesterday, the BTC price was in a range-bound movement. On August 20th, the price of Bitcoin fell to the low of $6,255.70 as shown by the red bearish candlestick.Today, a bullish candlestick is approaching the $6,600 resistance level for a possible bullish breakout. This has been the scenario in the last twelve days of the range bound movement.
Nevertheless, if you are looking to make modest profits every day then you have to adopt a range bound trading strategy. This is a strategy where you trade and exit at the key levels of the market. Today, we are considering the breakout that is imminent at the resistance level of $6,600. Traders can adopt the use of pending order to profit from the breakout.
If you are expecting a breakout at the resistance level, you can initiate a "buy stop" at the price of $6,600. On the other hand, if you are expecting a breakout at the support level, you can initiate a "sell stop" at a price of $6,000. In addition, a stop loss of 100 pips is placed above the price of $6,000. Similarly, a stop loss of 100 pips is placed below the price of $6,600.
BTCUSD Short-term Trend: Ranging
On the 4-hour chart, the BTC price is range-bound. The BTC price bars are concentrated at the resistance level as the bulls make a concerted effort to break the resistance level. Meanwhile, the Relative Strength Index period 14 is level 52 which indicates that the price is in the range-bound trend zone.
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