- Triangle breakout fails to stir up action as expected.
- Bitcoin remains to be bound in a wide range between $9,600 and $9,000.
Bitcoin appears to be nurturing a bullish momentum towards the end of the European session on Monday. The action follows a mundane trading session over the weekend. The best that Bitcoin did was to defend the key support at $9,000. On the upside, the crypto remained depressed under $9,250.
Meanwhile, the four-hour chart shows Bitcoin trading above a triangle pattern. This particular triangle formed after Bitcoin hit highs above $10,500 and plunged back to $9,000. Also following the short-lived surge; a lower high pattern has been respecting the descending trendline.
BTC/USD 4-hour chart
An attempt to break above the 50 Moving Average (MA) resistance has been met by selling pressure. BTC/USD is currently dancing at$9,262 and appears to be losing traction. In spite of the brief breakout, the largest crypto on the market is still range-bound between $9,600 (upper limit) and $9,000 (support zone).
The Relative Strength Index (RSI) clearly shows that sellers are swinging in action to stop correction above $9,300. I expect, Bitcoin to stay above $9,200 in the short-term. The American session is likely to experience market indecision, especially with the decreasing volumes.
From a short-term perspective, a one-hour chart, Bitcoin will continue to trend lower. In other words, the triangle breakout was either false or a bull trap. However, the low volume suggests that we should not expect rapid movements. Therefore, the support at $9,200 could also hold in the short-term. Other key support zones include $9,000 and $8,800.
BTC/USD 1-hour chart
Key Technical Levels
Spot rate: $9,244
Relative change: +37
Percentage change: 0.44% on the day
Resistance: $9,300 and $9,600
Support: $9,200 and $9,000
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige