Last week ended on a very disappointing note for Bitcoin market traders and speculators as the cryptocurrency failed to budge beyond a certain, small range. Many of the market participants expected Bitcoin to move as the week came to a close, but nothing significant was seen.
Bitcoin is currently trading at $228.90, closer to its support zone of $220-225.
Even though the price action has been sort of dull, the technical indicators have undergone changes. Let us find out below which ones are telling what.
Bitcoin Chart Structure – As you can see, Bitcoin traded in a small range of $223-246 during the previous week. The current value indicates that Bitcoin may not pierce the support in a hurry.
Moving Average Convergence Divergence – The Histogram has been maintaining very small divergences around the 0-mark for quite some time now. The current value of MACD at -2.9212 and of Signal Line at -2.9859 keeps the latest Histogram value at 0.0648.
Momentum – The Momentum value is highly negative at -11.1000, indicating that even though Bitcoin is able to sustain above the support, it is still not out of the woods.
Money Flow Index – The MFI can be seen aggressively losing its value while the price consolidates. This divergence is also something to watch out for! The latest MFI value is 38.8929.
Relative Strength Index – The RSI reflects weak sentiments with a value of 41.9169.
From a look at the daily BTC-USD price chart, it seems very clear that Bitcoin may extend its consolidation to another couple of sessions at least. But traders should pay attention to the technical indicators which are reflecting bearish sentiments.
Expect the volatility to remain low. Market participants can sit on the sidelines until a proper breakout or breakdown occurs.