Bitcoin BTC/USD Nears Breakout in a Triangle Formation

Free $100 Forex No-Deposit Bonus

The price of bitcoin BTC/USD has continued on its slightly bearish sideways movement this week, but from a broader view, it looks likely to break out in the next few days.  At midday on Thursday, the price of bitcoin edged upwards slightly as it looked to recover from losses incurred in the early morning hours.

BTC/USD Fundamental Analysis

Form a fundamental perspective, there isn’t much other than a series of some positive headlines. Bitcoin traders remain optimistic that the price of the pioneer cryptocurrency will not fall below $3,000 this year, and that at the current price of about $3,940, it is beginning to form a confluence that could trigger the next rally.

Earlier on Thursday, Tron CEO referred to bitcoin as being a revolutionary technology, rather than a business, which is why traders should invest in it on the basis of its disruptive power in the technology sector, rather than on current intrinsic value. Such a sentiment could turn the market optimism back up again triggering a bullish run.

BTC/USD Technical Analysis (the 60-min Chart)

Technically, based on the 60-min chart above, the price of bitcoin BTC/USD appears well poised for both the bulls and the bears. At the current price of about $3,940, BTC/USD is trading between two key Fib retracement levels.

The bulls will look to target profits at around $3,955.00 level, which located around the 38.20% Fib level while the bears will look at the 23.60% Fib level for a potential pullback, and target profits at around $3,925.00.

Better profit opportunities can be seen at around the 50% Fib level for the bulls, where BTC/USD could potentially trade at around $3,970, while the bears will look at the base Fib level at 0.00% at around $3,900.00 to pounce for profits.

BTC/USD Technical Analysis (the 240-min Chart)

In the 240-min chart, BTC/USD appears to be trading within a slightly bullish sideways channel. After dropping below the support baseline last week, it recovered to trade within a tight range.

This indicates a reduction in volatility and it can be demonstrated using the Average True Range, which currently is about $30.00 on the 240-min chart. This means that the price of bitcoin BTC/USD moves by about $30.00 every four hours, which when compared to the current price of about $3,940 equates to about 0.76% volatility.

In summary, with BTC/USD volatility at monthly lows and the price of bitcoin approaching a potential break out, it looks like both the bulls and the bears are faced with an interesting scenario for profit opportunities.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.