Technical Analysis – BTCUSD hovers above 23.6% Fibonacci with weak momentum

Melina Deltas, XM Investment Research Desk

BTCUSD has been recording marginally flat candles over the last sessions in the 4-hour chart, after the advance above the 23.6% Fibonacci retracement level of the downleg from 6508 to 3116.50, around the 3916 support.  The price holds above the 20- and 40-simple moving averages (SMAs), while the RSI indicator is flattening above the neutral level. Moreover, the MACD oscillator is losing momentum near the zero line.

If the price strengthens momentum to the upside, the next immediate resistance to have in mind is the 4085 barrier, taken from the latest high on Tuesday. Slightly above this area, the 4210 resistance could come in focus as well.

On the downside, the bitcoin may meet support at the 20-SMA slightly above the 3916support before heading lower to the 40-SMA near 3864. If the market manages to drop below this level and bearish actions take over again, traders could look for the next support at the 3710 hurdle.

To sum up, the very short-term bias remains neutral especially after BTCUSD jumps above the 23.6% Fibonacci.