Bitcoin on Thursday is trending inside a narrow trading channel, sustaining the 1 percent gain it made the previous day.
The BTC/USD instrument is rebounding from the highs made during the Wednesday trading session, now 0.67 percent down at 6307-fiat. The high ticks in bitcoin’s volume index somewhat explain how new money has entered the bitcoin space in the past 24 hours. On the other hand, the US Dollar Index was on a downside corrective path on Wednesday, validating investors’ inclination towards redistributing their greenbacks back to markets that have dipped this month.
BTC/USD Technical Analysis
The BTC/USD index since the rebound is targeting the descending trendline forming in the near-term scenario while keeping the 100 and 200-hour moving average curves in sight as the potential upside targets. The momentum indicator RSI has recovered as expected and is now trending inside a neutral sentiment area. The Stochastic Oscillator, meanwhile, has entered the buying territory, looking to move further up inside the overbought territory before another pullback.
The market sentiment overall remains bearish. The upside could be a pennant formation scenario which could yield another bearish pole.
BTC/USD Intraday Analysis
We have exited a long target towards 6329-fiat on a profitable note, and are now looking forward to two possible scenarios: pullback and breakout. In case of a breakout scenario, BTC/USD would make further gains towards the next upside targets at 6421-fiat. We will place our long position accordingly while maintaining a stop loss order just 3-pips below the entry point.
In case of a pullback scenario, a reverse from 6329-fiat has already made us enter a short position towards 6212-fiat, an intraday low in two separate trading sessions. While placing this position, we have maintained a stop loss order just 2-pips above the entry point to come out of the position in case the price action moves in the opposite direction.
A break below 6212-fiat would have us place another short position towards 6032-fiat as our primary downside target. A stop-loss order just 4-pips above the entry position will define our risk management perspective.
Featured Image from Shutterstock. Charts from TradingView.