HomeContributorsTechnical AnalysisBTCUSD Rangebound But Downside Risks Remain

BTCUSD Rangebound But Downside Risks Remain

BTCUSD has been trading within a tight range during the past month, unable to adopt a clear direction. However, the descending 50- and 200-day simple moving averages (SMAs) are painting a gloomy technical picture for the cryptocurrency.

The short-term oscillators also indicate a cautiously bearish near-term bias. Specifically, the RSI is dipping beneath its 50-neutral threshold, while the MACD histogram has crossed above its red signal line but remains in the negative territory.

Should selling interest intensify, 29,200 could act as the first line of defence. Diving beneath that region, the price could descend towards 27,950, which is the lower boundary of its recent sideways pattern. Failing to halt there, the 2022 low of 25,390 may cease any further declines.

In the positive scenario, bullish actions could propel the price towards the recent peak of $32,380. Conquering this barricade, the bulls might aim at the 36,630 barrier before the spotlight turns to the 40,000 psychological mark. Piercing through these levels, the 2022 peak of 48,200 could prove a tough obstacle for the price to overcome.

Overall, BTCUSD seems to be consolidating between the 29,000-31,000 range, while near-term risks are tilted to the downside. Therefore, a break beneath the 25,390 floor could signal the resumption of its long-term downtrend.

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