BTC : Sliding to Support
(Thu, 16 July 2020). Bitcoin slips towards a two-week in low vol trade. A range break nears and the path of least resistance remains lower.
BITCOIN (BTC) SLIDING TOWARDS SUPPORT
Bitcoin continues to range trade in a low volatility environment with little news to enable a breakout. BTC remains contained between $9,000 and $10,000 for the last 6 weeks with the overall bias pointing lower. The support level has prompted an uptick when neared, although three lower highs have been made since mid-June, suggesting sellers remain in control of short-term price action.
Another negative sign on the chart is the recent break below both the 50-dma and the 20-dma, which suggests that lower prices are the path of least resistance. The low vol backdrop also suggests waning enthusiasm for Bitcoin with the ATR currently at its lowest level in over a year. Bitcoin is a volatile asset class and a break below support may see BTC’s accelerate lower and back towards the May 25 swing-low at $8,630 before the May 10 low at $8,145. Below here the 200-dma currently sits at $7,985, a level that needs to be respected if Bitcoin is to steady and then reverse its move. Resistance is seen off the 50-dma at $9,389 before $9,500, a level that prompted the short-term sell-off on July 8.
GFS ASIA TEAM
- just now