BTC/USD Forex Signal: Bitcoin Consolidation Continues Amid

Bitcoin continued to diverge with other assets such as bonds and stocks. It has remained in a consolidation phase even as US stocks continued to rally.

Bearish view

• Sell ​​the BTC/USD pair and set a take profit of 18,500.
• Add a stop loss of 20,000.
• Timeline: 1-2 days.

Bullish view

• Set a buy stop at 19,700 and a take profit at 21,000.
• Add a stop loss of 18,500.

Bitcoin price remained in a consolidation phase as investors waited for the next catalyst. BTC/USD traded at 19,200, where it has remained for the past few weeks. This price is slightly above last week’s low of 18,700.

Bitcoin Consolidation Continues

Bitcoin continued to diverge with other assets such as bonds and stocks. It has remained in a consolidation phase even as US stocks continued to rally.

The Dow Jones and the S&P 500 rose more than 2.3% on Friday as the earnings season continued. Futures linked to the index have also pointed upwards on Monday. Historically, Bitcoin has had a positive correlation with these indices.

Meanwhile, Bitcoin consolidated as it diverged with the US Dollar Index. After rising to a 20-year high above $115, the US dollar index retreated to around $112 following the relatively weak US housing data. The dollar also retreated as currencies such as the euro and pound rose following the resignation of Lizz Truss.

Market data shows that Bitcoin volatility has fallen sharply in recent weeks. 30-day realized volatility has fallen to 52%, which is the lowest level in months. Another volatility gauge known as BitVol has fallen to 69.2, which is much lower than the May high of 111.

At the same time, Bitcoin trading volume has plummeted in recent weeks. Data compiled by Coinbase shows that the average daily trading volume has crashed from over $100 billion in January to $47 billion.

As such, a combination of low volatility and low volume can create problems for Bitcoin prices, which are often full of speculators. A good example is what happened in 2018 when Bitcoin fell to $3000 after going sideways at around $6000 for a while.

However, some analysts believe that Bitcoin’s consolidation could be a sign that smart money investors are buying the decline in small pieces for a while.

BTC/USD Forecast

The BTC/USD pair remained in a consolidation phase over the weekend. It made a good recovery after falling to a low of 18,662 last Friday. The pair is consolidating at the standard pivot point and at the 25-day moving average. At the same time, the relative strength index (RSI) moved to the neutral level of 50.

The pair is likely to remain at the current level in the coming days. The key support and resistance levels at 18,500 and 20,000.

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