After Bitcoin’s recent bounce, the digital asset started to trade sideways without a clear path. The last high was established at $7850 and now it’s set at $7650 after the bulls lost the 4-hour chart uptrend.
The recent low is at $7067 while Bitcoin is currently trading at $7256. Right now, the price is favoring the bears as it is closer to a bear break, however, it doesn’t mean a bear break will happen for sure.
Bitcoin could continue to trade sideways after setting a higher low and the equilibrium pattern could tighten a lot more for the next week. The hourly chart has already shifted in favor of the bulls as an uptrend has been set. The bulls are now looking to set a 4-hour uptrend but they will need a lot more work for that to happen.
The weekly chart remains in control of the bears until the daily chart changes. The volume continues to drop significantly after the recent crash and bounce. BTC/USD shorts are still really low on Bitfinex while longs continue to set highs not seen since March 2018.
This could lead to a long squeeze but it also shows that investors and traders are interested in buying Bitcoin.
The monthly chart hasn’t changed much and it’s still waiting for that weekly chart to shift into an uptrend to confirm a monthly higher low. Long term for Bitcoin remains bullish.