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February 13, 2015, 02:35:22 AM |
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Another day in a standstill market – the last 24 hours were no different from the last few weeks. The price continued to bore traders with sideways action, while forming a congestion pattern.
In a way, congestion comes as good news for those who want to see volatility. At this point, it is clear the bitcoin price is unattractive to most traders. In order to offset their positions, they will either have to pay a high premium or sell their BTC at a lower value. The game thus belongs to those who have major holdings, who will be able to move the market towards any position they like. A little volatility will see every small trader back in the game again.
February 12th Bitcoin Trading Session
As stated above, the BTC/USD continued to move sideways during the February 12th trading session. The pair started the day at around 219 and continued to trail along with little buying volume from order books. The price took baby steps upwards though failed to create volatility due to lack of trade volume.
At press time, the BTC/USD is valued around 221 on Bitfinex.
What to Expect Today?
The technical indicators, for the ninth time this week, are indicating a near-term bull attempt. Some short green candles have begun to appear in the last few hours. These upward movements are at least changing the near-term landscape in this overlong bearish market.
While staying within an uptight Bollinger band, the price is currently moving below the 50-, 100- and 200-hour SMA. The RSI meanwhile is around 51 – a neutral-bullish zone. However at this time, one must not get too excited as congestion forms. It simply means that support and resistance levels are approaching towards each other in absence of enough trading volume. This could actually translate the prevailing sideways movement to a breakout towards either side.
Watch out for 210 as the main support level. If the price drops below this point, we will be sighting this year’s bottom at around the 165 mark.
The BTC/USD however could extend its current, and small, bull run if it breaks above the 233 resistance level. There, the 210 support will be of less concern and price will smoothly move towards the next resistance around the 248 mark.
Conclusion (On Daily Charts)
Current Mood: Bearish
Moving Averages: Sell (2 Buy 10 Sell)
Technical Indicators: Strong Sell (2 Buy 7 Sell 2 Neutral)
Do you think it will drop below 200 or rise past 235 in the coming days/weeks?
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