Bitcoin has entered a sideways channel with price action tightening. Decision time is coming. Which way is BTC likely to go?
Bitcoin's tightening range is indicating that a major move is coming soon. Whether it be up or down. Let's take a look at the chart and see what the scenario is for both situations.
Since August 15th Bitcoin has been in a tigtening range between $6200 and $6600. Attempts by the bulls to breach and sustain above $6600 have occured twice since the 15th with the bulls unable to maintain the momentum. With the Daily RSI/CCI indicators still pointing up it's likely the bulls will hit the resistance line for a third time. If they are unable to maintain on the push it is likely that the bears will take advantage and attempt to push BTC to the next support line at $5600.
If the bulls do manage to break above $6600 with momentum and maintain the price it can invigorate the bulls and push BTC higher to the $8000 resistance.
Since the Risk/Reward is not optimal traders can look to enter with half the usual position with a tight stop loss of $5900. Entering at higher levels will be acceptable if Bitcoin can close a 4-Hour candle above the $6600 mark. A move below the stop loss is likely to push BTC down to the support of $5600.