Bitcoin: preparing for the break

The inflation figures, Fed next moves, potential impact of US Administration on Fed's decisions, trade tariffs were all unknowns on the financial markets during the previous period, which impact that the BTC was sort of left a bit behind. From the beginning of February, BTC entered into sort of side trading, between levels of $ 98K to the upside and 95K to the downside. There were occasionally attempts for a higher or a lower ground, however, the market swiftly diminished such moves, turning the price of BTC back to the channel.

Similar situations continued also during the previous week. The BTC continued to move in a range between the levels of $98,75K and $94,5K, continuing the channel from the beginning of February. The RSI is almost flat for the last 15 days, moving around the level of 50. It shows that the market is still not ready to choose the trading side. The MA50 and MA200 are currently moving as two parallel lines, without an indication of a potential cross in the near period.

From the perspective of the technical analysis, a movement in a channel indicates that soon the financial asset will make a final break, either toward the upside, or toward the downside. The chances are equal for both sides. What is also strongly evident on BTC daily chart is a strong support at 92K. In this sense, a break of a channel to the down side would imply that BTC will find support again at this level. If a break occurs to the upside, then the next strong resistance line holds at 100K. Still, there is a question whether this break will occur in the week ahead or BTC will spend another week in this channel? The technical analysis can indicate levels, but not the exact timeframe in which these levels will be reached.