BTC/USD has been trading in a sideways manner between 5700 and 6900 since March 19th. At the time of writing, the crypto is trading quietly in the middle of this range, raising questions as to whether it could make a strong directional move soon. In any case, as long as it continues to trade between the aforementioned boundaries, we would maintain a neutral stance.
In order to start examining whether the bears have gained the upper hand, we would like to see a strong break below the lower end of the sideways range, at around 5700. Such a dip would confirm a forthcoming lower low on the 4-hour chart and may initially pave the way towards the low of March 18th, at around 4985. If the bears are not willing to stop there, a break lower may set the stage for the low of March 16th, near 4400, the break of which could extend the slide towards the 3750 zone, marked by low of March 13th.
Shifting attention to our short-term oscillators, we see that the RSI runs below 50 and points down, while the MACD lies fractionally below both its zero and trigger lines. Although both indicators detect some downside speed, we stick to our guns that we will wait for the exit out of the range before we trust a decent directional movement.
On the upside, a move above 6900 may ring the alarm bell for the bulls, who could first drive the battle towards the 7600 area, defined as a resistance by the inside swing lows of March 9th and 11th. Another move higher may see scope for extensions towards the peak of March 10th at around 8130, or the low of February 28th, at 8400. If that level is violated as well, then the bulls may put the 8950 territory on their radars. That zone provided resistance on February 27th and March 2nd, and support on March 6th.
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