BTCUSD Price and Volume Action History For Trade Knowledge for BITSTAMP:BTCUSD by stocktechbot

The BTCUSD price has been trading in a range between 31K and 32K for almost 6 quarters in the weekly chart timeframe, with the lower end of this range serving as a strong support line. However, in the most recent 5 and half quarters, the support line has become a resistance line, indicating a potential change in trend.

In this blog post, we will analyze the price action in the daily and 4-hour chart timeframes to determine the likelihood of a breakout and the potential implications for traders.

Daily Chart Analysis:

In the daily chart timeframe, the price support line formed as elevated steps, which combined with the weekly chart resistance line, formed an ascending triangle pattern. This pattern suggests that the price further broke the ascending support line.

4-Hour Chart Analysis:

In the 4-hour chart timeframe, the price broke through the daily chart support line but also formed a new straight support line from June till now. Additionally, the 4-hour chart resistance line depicts a downtrend, which has formed a descending triangle pattern.

As the price currently oscillates within the nose of the descending triangle pattern, it is wise to wait and watch the price movement or trade in the timeframe of less than 1-hour charts.

Volume on Weekly Chart Timeframe:

In addition to the price action, it is important to consider the volume on the weekly chart timeframe. The volume has been declining over the past few weeks, which could indicate a loss of interest in the asset and a potential downward move in the price. However, it is important to note that the volume is still above the 20-day moving average, which suggests that there is still some interest in the asset.

Trendline on MACD with OBV Indicator:

When we draw a trendline on the MACD with the source of OBV indicator, we can see that the descending triangle pattern still exists. This suggests that the price may be preparing to break out of the current range and move higher.

However, it is important to note that the trendline is not yet complete, and the price may still be consolidating within the range.

Conclusion:

In conclusion, the BTCUSD price is currently trading in a range between 31K and 32K in the weekly chart timeframe, with the lower end of this range serving as a strong support line. However, the support line has become a resistance line in the most recent 5 quarters, indicating a potential change in trend. The daily chart shows an ascending triangle pattern, which suggests that the price may be preparing to break out of the current range and move higher. However, the 4-hour chart shows a downtrend and a descending triangle pattern, which suggests that the price may be consolidating within the range.

Therefore, it is wise to wait and watch the price movement or trade in the timeframe of less than 1-hour charts before making any trading decisions. Additionally, it is important to consider the volume on the weekly chart timeframe and the trendline on the MACD with the source of OBV indicator to gain a better understanding of the market dynamics.