Sentiment among traders and speculators in the market is extremely temperamental, swinging between bearish and bullish on an almost daily basis. The charts are relatively neutral but pressure is certainly building in the Bitcoin (BTC) market. Let’s take a closer look at the action.
The one-day chart for Bitcoin (BTC) shows that, since the decline following the three-wave run up to $4200 during February, Bitcoin has been range bound — swinging around four percent either side of the March opening and establishing a monthly range between $3670 and $3950.
Overall, the chart remains is in a bottoming pattern; with the current price action attempting to put in a third higher low — but the bulls are struggling to break across $3950 and conquer the $4000 handle.
The MACD is relatively flat but has crossed marginally bearish — although, still above zero — so this does not particularly lend itself to being indicative of a direction.
The DMA 50 and 100 are crossed bullish and lie right on the monthly support and 61.8 percent retracement of the February move at $3670.
Should these fail to hold as support when interrogated by the bears, the 200 WMA lies some way below at $3400 and would act as the last line of defense for the bulls.
The four-hour chart shows that Bitcoin (BTC) price action remains at the upper end of the monthly range and previous tests of the lows have been bought up quickly by the bulls.
However, the charts are leaning slightly bearish on lower timeframes, with a cross on the StochRSI crossed bearishly and a Head and Shoulders top threatening to form — which would indicate that a retest of the monthly range lows at $3670 would be on the cards.