Bitcoin (BTC) price continues to trade at $33,629 in the first hours of the weekend after encountering resistance at $34,267.
Daily BTC/USD chart
Looking at the daily chart, BTC/USD is still sideways but volatile. BTC peaked around $34,267 before falling below $33,476, where the 9-day and 21-day moving averages coincide. Therefore, it may continue to trade sideways as Bitcoin price has not recovered yet and is confirmed by the technical indicator Relative Strength Index (14).
How long will BTC Price continue the band movement?
According to the daily chart, Bitcoin price is hovering at $33,748, showing an intraday loss of 0.58% as the coin’s increased volatility caused it to consolidate in a bearish flag pattern.
Therefore, an upside break is expected to continue in the direction of the previous trend. In this case, traders are waiting for BTC/USD to break above the 9-day and 21-day moving averages before moving to the potential resistance levels at $37,000, $39,000 and $41,000.
Also, if Bitcoin price fails to break above the moving averages; The price could decline below this resistance zone and head towards the vital $32,000 support. Further decline in buying volume could cause the price to sag as low as $31,000, $29,000 or even $27,000 support. The technical indicator Relative Strength Index (14) appears to be moving sideways, which can be interpreted as a sign that the market is currently undecided.
BTC/USD 4-Hour Chart
The 4-hour chart reflects sellers stepping back into the market. Bitcoin price is currently struggling to break above the 9-day moving average. Meanwhile, breaking above the 21-day moving average could trigger a new uptrend for the coin.
All in all, if buyers can gain strength and head north for Bitcoin price, traders can retest it at the $34,000 resistance level. Breaking the said resistance could allow the bulls to head towards $35,000 and above, but the technical indicator Relative Strength Index (14) will likely drop below the 50 level, which could signal more bearishness in the market.