“The consolidation phase itself is neutral, but we think a breakout is more likely than a breakdown,” .This was Katie Stockton saying. She is the founder and managing partner of Fairlead Strategies. She talked about her idea in a research note published on Monday. “Intermediate-term momentum has been improving based on the MACD histogram.”
Bitcoin price range
Bitcoin is trading between $30,000 and $40,000 since late May until now. The price range has limited area further in the past two weeks. Having the bulls reluctant to send prices above $36,000 and sellers refusing to step in under $32,000.
A huge move seems overdue and could be bullish, as the weekly chart MACD histogram, an index used to measure trend strength and trend changes. It turned higher, by reaching the bottom in mid-June.
The relative strength index continues to indicate oversold conditions with a below-30 print. “Intermediate-term oversold conditions have generated stabilization above $30,000, which has proven to be strong support for bitcoin,”. Also Stockton mentioned.
As Stockton said, the anticipated breakout would be vouched on following daily UTC closes above the 50-day simple moving average (SMA) at $35,500. That can be the doors to the next resistance level, near $44,000.
The 50-day SMA is one of the most widely-tracked technical lines. Stockton talked about it as the level to protect for the bulls back in April. As prices were trading so good above average. The SMA support cracked on April 20 and it was followed by a sell-off in May.
At the time of this report, bitcoin is trading with a little chang on the day near $33,288. A break under the long-held support at $30,000 could ask chart-driven sellers. Although, Stockton sees a low likelihood of a range breakdown.