By
Tolu Ajiboye
April 23rd, 2024
The traders should watch out for the breakout before taking the position. Should the bulls defend the $3,949 price level, the Bitcoin price may rally to the north and have its target at $5,084 – $5,667.
Key Highlights:
- Consolidation is ongoing on the Bitcoin market;
- break out is imminent;
- traders should remain flat.
BTC/USD Long-term Trend: Ranging
Distribution Territories: $4,447, $5,084, $5,667
Accumulation Territories: $3,949, $3,652, $3,450
Ranging movement in the Bitcoin market on the long-term outlook; on the daily chart above BTC price is consolidating between the key distribution territories of $4,447 and an accumulation territory of $3,949. After BTC price pulled back from the accumulation territory of $3,652, the bulls lost the pressure and could not break the distribution territory of $4,447.
Bitcoin price remains bearish as long as it is contained below the 21-day EMA and 50-day EMA. The Stochastic Oscillator is above 20 levels (oversold region) with the two signal lines interlocked and flat to the level without direction which indicates consolidation is ongoing. In case the accumulation territory of $3,949 is broken by the bears BTC price may have its low between the accumulation territory of $3,652 and $3,450.
Should the bulls defend the $3,949 price level, the Bitcoin price may rally to the north and have its target at $5,084 – $5,667 price level. The traders are advised to watch out for the breakout before taking the position.
BTC/USD Medium-term Trend: Ranging
BTC/USD is ranging on 4-Hour chart. On November 28, BTC price reached the high of $4,447 distribution territory and the price bounced back and then began to range between the distribution territory of $4,447 and the accumulation territory of $3,949 and the two EMAs were flat to confirm the ranging movement.
The Bitcoin price remains below the 21-day EMA and 50-day EMA and the Stochastic Oscillator period 14 is at 40 levels with the signal lines point to the south connotes sell signal in which if the bears increase their pressure and a breakout downside the accumulation territory of $3,949, BTC price may have its low at $3,652 – $3,450.