BTCUSD continues to trade within the 20- and 40-simple moving averages (SMAs) in the 4-hour chart, indicating flat movement. The sideways action is also supported by the horizontal Tenkan-sen line. However, momentum signals seem to be slightly bullish as the blue Kijun sen line remains below price action and the light green Chikou span is ready for a bullish crossover with price. The RSI is trying to jump above 50 level, while the MACD oscillator holds above trigger line.
Should the price extend higher above the 40-SMA, it could find resistance inside the Ichimoku cloud at 3644 and then at 3710. Also, an advance above the cloud would increase speculation that a bullish move is in progress towards the 23.6% Fibonacci retracement level of the downleg from 6508 to 3116.50, around 3916.
Should the price stretch south, immediate support is coming from the 3460 barrier, taken from the bottom on Tuesday. A step lower could bring the bearish sentiment back into play, retesting 3390, while if there are steeper declines, 3116.50 could come in focus for investors.
To sum up, the very short-term bias remains neutral especially as BTCUSD lies within SMAs.
