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The BTC/USD price remained in an extremely tight range after it failed to move above the important resistance point at 25,276.
- Sell the BTC/USD pair and set a take-profit at 22,000.
- Add a stop-loss at 24,265.
- Timeline: 1-2 days.
- Set a buy-stop at 23,712 and a take-profit at 25,000.
- Add a stop-loss at 22,000.
The BTC/USD price remained in an extremely tight range after it failed to move above the important resistance point at 25,276. It pulled back to a low of 22,760 as the US dollar index (DXY) held steady above $105. Bitcoin has also struggled because of the rising 2-year bond yield, which is approaching the important resistance point at 5%. As such, many investors are moving their funds from risker assets to relatively safe short-term government bonds.
Bitcoin jumped to a high of $25,276 in February and then struggled to move above that level several times. Its volume has retreated and on-chain data shows that liquidity has dropped to the lowest level since May last year. The chart shows that the coin has formed what looks like a double-top pattern whose neckline is at 21,284.
Bitcoin has also moved slightly above the 50-day and 100-day moving averages, which is a bullish sign. Also, it has actually formed a golden cross, which happens when the 50-day and 200-day moving averages make a bullish crossover. The histogram of the MACD indicator has moved below the neutral line while the MACD and signal lines have continued retreating.
Meanwhile, the Stochastic Oscillator has moved from the overbought level to below the neutral point at 50. Therefore, the pair has some more downside, which could see it plunge to a low of 20,000 if there are not enough buyers to push it above 25,275.
On the 4H chart, we see that the BTC/USD pair formed a triple-top pattern at its highest point in February. The current price is notable since it was its lowest point on February 17. It has also formed what looks like a bearish flag pattern, which is usually a bearish signal. The pair has also moved slightly below the Woodie pivot point and the key resistance level at 24,263, the highest level on February 2.
Therefore, because of the bearish flag pattern, there is a high possibility that it will have a bearish breakout. If this happens, the pair will retreat to the first support level at 22,000. A break below that support will signal that bears have prevailed, which will see it retreat to a low of 20,000.
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