Bitcoin has been trading sideways at the price of $5.000. Anyway, in our opinion it is very risky condition for buying due to climatic actions in the background and potential overbought condition.
According to the H1 time-frame, we found potential head and shoulders pattern in creation, which is sign that BTC may be under the distribution process. Also, there is potential wedge pattern on the right shoulder, which is another sign for potential weakness on BTC. Resistance levels are seen at the price of $5.070 and $5.323. Key support levels are seen at the price of $4.777 and $4.652.
Trading recommendation: We are watching for potential breakout of the support at $4.777 to confirm downward movement and potential test of $4.652.
The material has been provided by InstaForex Company - www.instaforex.com