Bitcoin Price Eyes Breakout As Trading Range Tightens

Bitcoin is stuck in a narrow $550 range between the key long-term moving averages today, but may be prepping for a breakout, the technical charts suggest.

As of writing, BTC is changing hands at $8,760 on Bitfinex, and is trading between the 50-day moving average at $8,287 and the 100-day moving average at $8,837.

The sell-off from the May 5 high of $9,990 came to halt around the 50-day MA on Saturday.

Further, the 50-day MA also acted as strong support on Monday.

On both occasions, the rebound from the 50-day MA ran out of steam around the 100-day MA hurdle.

The rangebound action seen in the last three days has established the 50-day MA as a major support and the 100-day MA as a formidable resistance and the breakout of this zone will likely set the tone for the next big move in BTC. Daily chart.

A close today above the 100-day MA of $8,837 would signal bullish doji reversal and upside break of the trading range.

A close below the 50-day MA of $8,287 would confirm downside break of the trading range and bearish doji continuation pattern, i.e. sell-off from the recent high of $9,990 has resumed.

With major moving averages trending south, BTC bulls will likely struggle to cut through resistance at $8,900 in a convincing manner.

Another rejection at the descending trendline seen in the 4-hour chart will likely yield a drop to 50-day MA located at $8,287.