The market is preparing for a new impulse. Is this movement likely to grow into a medium-term trend?
The lack of decisiveness among sellers explains the lack of continuation of the downward trend, and this has caused a sideway movement to form between the two resistance levels of $416 and $424.
This is connected to the medium-term level of $410: the Bitcoin price has stopped in its close proximity.
A much greater force has to appear in order to influence a trend of such scale. During the past two weeks no such force has been observed.
However, there is still potential for a downward movement in the short-term. For a midday decline trend to form, we need a start in the form of a first wave, which will need to break through the level of $416. A fortification on it will show the strength of the sellers. During the formation of the third downward wave, the minimal target will be around $410, if the trend’s structure isn’t disrupted.
The $416 price is the most profitable one for the Bitcoin buyers. Thus, if there will be a Bull majority, the BTC/USD price will return to at least $424, after which a new decision will be made regarding further direction.
The resistance level at $424 is the most profitable for Bitcoin sellers. A stop at that level will be the first indication of the buyers’ advantage. If that trend keeps its momentum, the closest target will be $430.
Thus, two points are important for a choice of the midday direction: $416 and $424. That’s where the market will decide upon the short-term trend with minimal targets of $410 and $430.