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BTC analysis – price continues in sideway structure, dominance falls

2 min read

BTC develops laterally in the short term sideway structure. Correction by everyone expected, has not occurred yet. But is that a good signal? If we take into account that the price of BTC rose from $ 29,000 to $ 50,500 without any sign of a more serious correction, the question arises as to whether a correction is not necessary. At present, however, growth has been stagnant for about 10 days.

BTC since reaching a maximum of $ 50,500 on August 23, it has still stagnated in the sideway structure between the levels of $ 46,500 and $ 50,500. The price created a double bottom for the export and a double top for the resistance. Bull target remains afloat $ 53,500, however, the price needs to break the mentioned resistance, preferably with the support of volumes.

BTC / USD 4H.  Source: TradingView
BTC / USD 4H. Source: TradingView

BTC is currently a sideway

On the other hand, if the price does not happen to maintain $ 46,500 support, then another key support is on the surface $ 42,500. This zone is key to continuing the trend, as there are gaps below support and above resistance transactions. This means that if the price exceeds one of these values, the mentioned targets will be met almost immediately and in high volatility.StormGain

RSI it even constantly respects the level of overbought as resistance at 70 points. On the other hand, it still tests support at about 38 points. In the orange circle on the graph, we see that the price respected the previous long-term support as a new resistance. After such a bear signal, the price should go to a correction. However, this did not happen, which confirms the strength on the part of the bulls.

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