Cryptocurrency pair Bictoin-U.S.Dollar (BTC/USD) continues to trade in a low-volatile uptrend and is gradually approaching the critical $4,300 price zone. The movement is nearly fixed in the inclined price channel with a price span of approximately $150. In the last few days, the range of Bitcoin price motion is clamped in the price interval of $3,970 to $4100. This flat movement was preceded by a small “bullish” momentum, which moved Bictoin-U.S.Dollar (BTC/USD) price up from the lower boundary of the channel.
Assuming BTC/USD will continue in a low volatile uptrend, we can expect that bulls will make a new attempt to break the level of $4,200. Looking at the BTC/USD chart movement, the following price pattern becomes obvious: at the beginning, the asset remains in an almost flat position for a several days, after which impulsive movement pushes the price up. Based on this pattern, it would be logical to assume that consolidation will continue for some time.
The Bitcoin dominance index continues to decline, dropping below 51%, indicating a continuing flow of crypto market capital from Bitcoin into altcoins. A similar trend has been observed since the beginning of February. The rise of Bitcoin Cash (BCH) price by nearly 20% and the widely noted Stellar partnership with IBM could arguably be a few reasons why Bitcoin’s dominance is decline.
One of the top cryptocurrency traders on Tradingview, Dmitriy Lavrov, says that the sideways movement of Bitcoin (BTC/USD) could continue for the next several days or even weeks.
“The price slides sideways at 4000.00 resistance level . We can see 3 attempts to break this level which were not successful and now there is the 4th attempt,” says the trader.
“Ichimoku indicator tells us about the bullish trend . It means if the market continues the trend movement, the resistance level should be broken. But at the same time, DMI indicator confirms range market conditions. ADX line moves below the signal level, and it gives a signal that the market does not have power for strong price movements. Buyers and sellers are not so active to push the price upward or downward. Thus, the sideways movements at the resistance level with false breakouts, it can become a reality for several days or maybe weeks,” wrote Lavrov.
“But if the market gets support from outside, any news or other factors which can increase the demand, the price will be able to move upward and break 4000.00 level. If so, the market will confirm that it’s going to climb higher and 4200.00 level will become a new target. It will be possible to use this breakout for opening short term long trades. With stops below the local swing low and profit targets likes 4200.00 and 4500.00 resistance levels. If DMI becomes bullish and ADX line starts an upward movement, these signals will be good confirmation for the breakout,” concluded crypto trader, Dmitriy Lavrov.