The key currency Bitcoin (BTC) is not moving sustainably this week either and is still trading in a sideways range. The BTC dominance clearly has to give up after a bullish eruption and is again in the area of the annual low.
The BTC price has moved within its developed sideways range in the last few days. The current oscillation of the BTC rate around the EMA20 (red) is indicative of this. This assessment is underpinned by a static sideways movement of the RSI and the MACD indicator. However, the declining momentum in the RSI currently indicates a possible price decline towards $ 10,150. As long as the BTC rate continues to be valued in its $ 1,000 trading range, it is still necessary to wait for this trading range to resolve on a daily closing basis.
The past trading week was also dominated by a lack of direction in the BTC rate. The longer the rate of the reserve currency stays within the green box between $ 10,1500 and $ 11,099, the more massive the breakout will be.
Bullish scenario (Bitcoin price)
If the bulls break the resistance at $ 10,950 and climb to $ 11,099, the likelihood of a bullish continuation increases. If this resist can be broken through dynamically, a walk-through of up to 11,572 US dollars or 11,665 US dollars must be planned. If this key resist from the supertrend and the 78 Fibonacci retracement can also be overcome, the way is clear for a retest of the US $ 12,088. If the BTC rate subsequently stabilizes above the 12,088 US dollar, the resistance levels at 12,307 US dollars and 12,480 US dollars will come back into focus. The fact that Bitcoin can sustainably overcome the annual high will depend on several factors. In addition to the development of a vaccine and the outcome of the presidential election, it is currently important to monitor the development of the US dollar. A persistent weakness of the world reserve currency would significantly improve the chance of a bullish development in the crypto market.
Bearish scenario (Bitcoin rate)
Neither the bulls nor the bears managed to break out of the sideways phase this week. A first partial success for the bears would be a break of 10,535 US dollars, which should push the BTC rate again towards 10,150 US dollars. If the Bitcoin rate falls below the 10,152 US dollar at the end of the day and thus back into the blue sideways channel, the 9,870 US dollar (EMA200) (blue) target should be planned again. If the bears can dynamically undercut this support and break through $ 9,771, a correction to $ 9,534 is likely. If the Bitcoin falls below this support at the daily closing price, price targets are activated at 9,083 US dollars and a maximum of 8,790 US dollars. The lower edge of the light blue trend channel runs here.