The last ten days were undoubtedly draining for any Bitcoin enthusiast. BTCUSD did not move from its consolidation phase. The candles remained pretty small, and the quantity of Bitcoin traded was dismal.
The US Federal Reserve is meeting today. A lot of Bitcoin investors would be carefully analyzing the outcome of the meeting. Any hint at further money printing exercises would spurt another round of BTCUSD buying.
Technical analysis and outlook for BTCUSD
- Short term outlook: Bearish
- Medium-term outlook: Moderately Bearish
The one-hour timeframe for BTCUSD shows that Bitcoin lost a crucial support level. It dropped below the 20-period Exponential Moving Average.
The contraction in the Bollinger Bands signifies a reduction in volatility. Reduced volatility would have been an excellent sign if BTCUSD was Bullish. However, since Bitcoin is in consolidation, the reduction in volatility indicates it will stay like this for the time being.
The RSI is currently at 50 but headed lower. MACD had a Bearish crossover recently and is in the reds.
The silver lining for BTCUSD: Buyers still interested
The hourly chart shows BTCUSD dropping below the EMA and heading towards the lower band. However, buyers quickly took over and prevented a further decline.
It shows that buyers are still interested in buying Bitcoin but at a reasonable rate. And that is the way it should be with any Financial instrument. Avoiding the FOMO and mad rush is the most prudent thing to do when investing in Bitcoin.
Therefore, it gives some hope for the moderate term. The tides might quickly turn in favor of BTCUSD, and the investors would witness a massive rise.
The region from the $10,000 to $10,500 will be another tough barrier for BTCUSD. However, analysts are still hopeful that a massive Bull run might occur this year. As per the current technical indicators and fundamental situation, that Bull run might take a while to happen!
