Bitcoin Price Analysis (BTC/USD) August 21, 2017
Bitcoin did almost nothing during the day on Friday, as we continue to hover around the $4300 level.
Above, I see massive amounts of resistance at the $4500 level, and I think that breaking above there is going to take a certain amount of momentum building first before we can do it. Because of this, it’s likely that pullbacks will be bought, but I think you will have to be patient to see this market break above there.
Also, I would invite you to look at the US Dollar Index, as it gives you an idea as to how the US dollar's going to do overall. If it starts to fall, then it would make sense that Bitcoin rises against it. Alternately, this could be bearish for the Bitcoin market. I believe that the $4500 level is going to offer significant resistance, but there’s nothing particularly special about the number other than the fact that it is a large, round, psychologically significant price.
Choppy range bound trading
I believe that we are going to see short-term choppy range bound trading, with the $4200 level offering support. I also believe that the $4000 level underneath their will offer support, extending down to the $3800 level.
Because of this, I believe that buying is still the way to go, but if we were to fall below the $3800 level, that could change the overall trend. Because of this, keep that level marked on your chart, as it is important to pay attention to.
Alternately, if we break above the $4500 level, the market then is free to go towards $5000 over the longer term. I suspect this might be the case, but we need to see that $4500 level taken out, and the trigger for that to happen.
In the short term, I think it’s going to take a bit of grinding to achieve anything.
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