The break above $4,000 has not really changed the interim bias of the bitcoin market.
The cryptocurrency on Wednesday remained largely unchanged on its 24-hour adjusted timeframe. The news of a possibly peaceful end to the ongoing US-China trade talks allowed global markets to establish their fresh intraday highs. Investors, meanwhile, focused less on their bitcoin portfolios after finding more opportunities in the Dow Jones, Nasdaq and S&P 500 markets.
The silence in the bitcoin market also alarmed bulls of their fading dominance after an impressive rally this week. The BTC/USD rate managed to stay above $4,000, its psychological support, across the Asian and European session. The pair now awaits a breakout action, but its arrival cannot be predicted.
Bears have more dominance in the bitcoin market as bulls go back into sleep mode. It is clear that buyers are waiting to enter any extended long positions on a higher high above $4,000. That leaves the market pretty much for the downward trend.
There are three essential factors to consider concerning the current price action: history, resistance, and Doji. The last two daily sessions have witnessed bitcoin opening and closing the day on or around the same level. It is called Doji formation, which indicates the bias conflict in the market.
Based on this technical indicator, one can see that traders are clueless at this point, which leaves the path of least resistance to the downside. The same had happened between the Oct. 15 and 29 trading sessions.
The 50-period moving average on the 1D chart is capping uptrend from flourishing into a breakout.