- 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
Trend: Bullish
Volatility: High
Resistance: $9,300 and $9,600
Support: $9,200 and $9,000
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