Bitcoin Stuck In A Trading Channel: Is The Next Break Bullish Or Bearish?

Bitcoin hits resistance as the last 24 hours also brings volatility as expected. After hitting resistance at 6400, BTC gave a clear indication of struggle to continue upward as the mid-scale (4-hour candle chart) showed the extremely tight range BTC traded in for over half a day. This, along with such low volatility and an equilibrium of buying/selling, gave the topping signal at least for the short term. The drop thereafter is shown on the hourly scale.

 

 

The 6250 line that held as hard support on the last downfall kicked in as some level of support as BTC struggled to maintain any bullish momentum. Now in the 6200 range, BTC still lingers in a sort of “mid-section” as the next major support down is at 6k with resistance still firm at 6400.

Price is now set to meet the MA on the underside which will pull BTC down further. After the drop and retracement back to 6400 resistance, BTC has also taken back 2/3 of the previous move up – another bearish sign. Being in such limbo, this is again a pivotal point for BTC as momentum has begun to flatten, and the 6k mark is dangerously sought out. If this level is broken, there will likely be new lows for BTC. This level must hold in order for a more long-term trend change.
Stochastic levels continue to remain a bit sideways as well, although down at the moment. MACD momentum has flattened giving no clear indication of movement for the day, however, keep in mind that 6k support has not been hit yet, so bearish momentum remains to test firm support.
BTC is currently a No Play. Risk: High
Futures Traders – Trade the Trend. The Short-term trend is currently short.