Bitcoin increased after its most recent decline but is still located below strong resistance. It continues to move somehow sideways, but we may receive a good signal soon.
The most recent drop signaled that the downside is limited and that we may have strong growth. BTC/USD moves in the range trying to accumulate more bullish energy before jumping higher. Technically, a new leg higher is still expected after its major decline.
BTC/USD Trading Range
BTC/USD has found support on the S2 (31,171.18) level and is now located above the weekly pivot point (36,552.97) level. The resistance is seen at the descending pitchfork's upper median line (uml).
The R1 (38,783.26) is seen as resistance as well. Making a valid breakout above these levels could really signal more gains. Personally, I would like to see a breakout from the descending pitchfork's body followed by a temporary decline before developing a strong leg higher.
Outlook
A potential breakout above the R1, uml, and through 39,489.82 could signal a potential swing higher in the short to the medium term.
