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22 Oct 2019
1 min read

Bitcoin Remains Steady In Its Weekly Outlook

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Written by OspreyFX News Team

Bitcoin remains steady in its weekly outlook, targets a solid demand zone

Last week didn’t show much action in the crypto sphere. The proof is that the “father of all crypto,” Bitcoin, remained in a wide range that stays undefined. At the end of the week, the BTC/USD pair was oscillating around $7,930, losing more than 1.70% of its value over Friday. However, it doesn’t change the upcoming outlook.

The H4 chart shows that cryptocurrency remains below the 50 and 200 SMA, maintaining its bearish stance across the board. From the highs of this year, one can notice a downward trend line that caps the rise of Bitcoin, which also limits its upside potential in the short and medium-term.

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Range definition in the short-term

In fact, for the BTC to test the $9,000 psychological zone again, it would first have to make a breakout of the 200 SMA, which coincides with a resistance level of $8,663.29. If the buyers’ containment barrier is overcome, all evidence points to the $9,250 level, where it converges with the previously mentioned trend line.

On the flip side, it can be observed how the $7,761.78 area is playing the role of an active zone of high buyer demand, which has stimulated the cryptocurrency to not continue extending its falls. The breakup of that region could clear the way for the pair to test the psychological level of $7,200.

Momentum oscillators for the BTC/USD pair

Regarding the technical oscillators, the RSI of 14 bars is in negative territory, favouring more falls in the short term. However, this indicator has just emerged from an oversold situation, which could be a warning that the $7,761.78 area is solid. On the other hand, the momentum is flat, indicating indecision on bitcoin’s part, which still does not clarify the landscape for short-term crypto trading.