In the immediate term, bitcoin will likely continue to oscillate around the mentioned $10,800 intermediate resistance before deciding on further direction
Bitcoin price extends its consolidative pattern with bullish bias after a sell-off witnessed last week amid negative news surrounding the cryptocurrency exchange BitMEX as the US CFTC has charged 3 BitMEX executives of violating US regulations. President Trump contracting Covid-19 weighed on the cryptocurrency market as well.
Now, as the market has switched into a recovery mode, BTCUSD is back above the 100- and 20-DMAs that arrive at $10,592 and $10,696 respectively. Still, as long as the pair remains within the $10,000-$10,900 range, the leading cryptocurrency by market capitalization looks directionless. As BTC demand picked up again, the prices need to clear the $10,800 intermediate resistance to challenge the $11,000 psychological handle while the key barrier for bulls arrives at $11,200.
Of note, implied volatility towards bitcoin has been at its lowest levels in more than 18 months, suggesting a breakthrough could take place after the current consolidation phase. If the coin manages to make a clear break above $11,200, the digital currency will confirm the bullish trend. Otherwise, the pair could proceed to a bearish consolidation at best.
In the immediate term, bitcoin will likely continue to oscillate around the mentioned $10,800 intermediate resistance before deciding on a further direction. Technical indicators on the daily timeframes are neutral, with the RSI being directionless around the 50 line.
On the four-hour charts, there are some conflicting signals, as the price has settled above the three key moving averages while the RSI shows a modest bearish slope, suggesting the digital currency could struggle to see a directional impetus any time soon. In a wider picture, however, it looks like BTCUSD will continue to derive support from the 20-week SMA and could eventually stage a decisive breakout following the current accumulation phase.
