Bitcoin continues to range today as neither the bulls nor the bears are able to take hold of the market.
During yesterday’s BTC/USD technical analysis, I posted the following hourly chart:
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When I mentioned, “We can see how price retraced up to the 38.2% Fibonacci level at 434, testing it on a number of occasions, marked in red. With the resistance at 38.2% holding up for now, it’s virtually inevitable price is going to fall back down to the 23.6% Fib level, and I’d expect some ranging to occur between these two levels for the next few hours.” Price did fall down to 23.6% at 431, testing it, before bouncing back up, but this time to the 50% mark at 436, and it’s been doing this yoyo ever since, as can be seen by way of the current BTC/USD hourly chart below (click to expand):
I’ve performed the Fibonacci study from the high of yesterday to the low of yesterday, i.e. from 445 to 426. I’ve highlighted the two key Fibonacci levels here which are containing price in a consistent manner. But take a look at the Stochastic Oscillator and see how many times the %K period and %D periods have crossed over each other, back and forth in just a matter of a few hours; all in all pretty unsmooth and messy, a clear indication of ranging.
I’ve drawn the latest bearish red arrow to show that price shall continue to obey these lines in the immediate future, expect price to test 23.6% at 431 very soon, before another bounce up.