Share this article
Bitcoin Awaits Decisive Price Move as Trading Range Tightens
Bitcoin has witnessed indecisive trading in the last 48 hours and would turn bullish again if prices rise above $3,900.
Updated Sep 13, 2021, 8:56 a.m. Published Mar 1, 2019, 11:00 a.m.
Make us preferred on Google
View
- Bitcoin's retreat from highs near $3,900 seen yesterday has poured cold water over the bull mood generated by Wednesday's quick recovery from lows near $3,650. Therefore, the immediate outlook is neutral.
- A UTC close above $3,897 (previous day's high) would validate Wednesday's long-tailed candle and open the doors to re-test of the last week's high of $4,190. This looks likely as early signs of bullish reversal have emerged on longer duration charts.
- A break below $3,658 (Wednesday's low) would strengthen the bearish view put forward by last Sunday's high-volume sell-off and could yield a drop to $3,400.
Bitcoin has witnessed indecisive trading in the last 48 hours and would turn bullish again if prices rise above $3,897.
The crypto market leader jumped to a high of $3,897 yesterday, according to Bistamp data, having shown strength with a "V-shaped" recovery from lows near $3,650 on Wednesday.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
That bullish follow-through, however, was short-lived with prices closing (UTC) largely unchanged on the day at $3,791.
So, with buyers and sellers battling it out in the range of $3,650-$3,900, the immediate outlook is neutral.
The probability of bulls coming out victorious with a move above $3,900 is high, as the dip demand witnessed on Wednesday reinforced the high-volume bullish triangle breakout, confirmed on Feb. 19. Also, so far, the follow-through to the pullback from yesterday's high of $3,897 has been anything but bearish.
BTC is currently trading at $3,810 on Bitstamp, having snapped the record six-month losing streak with double-digit gains in February.
Daily chart
BTC created a candle with a long upper shadow yesterday, establishing $3,897 is a level to beat for the bulls in the short-term. A UTC close above that level would validate the "buy the dip" mentality signaled by Wednesday’s long-tailed doji and open the doors to $4,190 (last week’s high).
A bull breakout, however, may remain elusive, if prices find acceptance below $3,658 (Wednesday’s low). That would put the focus back on the big bearish outside reversal candle carved out on Feb. 24 and possibly yield a deeper drop toward $3,400.
4-hour chart
As seen above, the ascending 100-candle moving average (MA) has been limiting the downside since Feb. 24. The average is also holding above the 200-candle MA, meaning the trend is bullish.
The bullish case, however, would weaken if the 100-candle MA, currently at $3,778, is convincingly breached.
However, with the longer duration charts flashing early signs of a bullish reversal, as discussed earlier this week, the odds of BTC suffering deeper losses toward $3,400 appear low.
Disclosure: The author holds no cryptocurrency assets at the time of writing.
Bitcoin image via Shutterstock; charts by Trading View
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
BTC, ETH, SOL move higher as markets eye Fed, Mag 7 earnings and weaker dollar
Crypto prices steadied as traders looked past short-term volatility with positioning shifting to the Fed, megacap earnings and a weakening dollar.
What to know:
- Bitcoin hovered just below $89,000 in Asian trading, posting modest gains in a narrow range as traders awaited a key Federal Reserve decision.
- A weaker U.S. dollar and record-setting global equity markets, led by technology shares and AI optimism, have supported risk assets but crypto has lagged metals like gold and silver.
- Analysts say bitcoin's rebound from the $86,000–$87,000 zone reflects reduced leverage and short-term stabilization rather than strong momentum as markets brace for Fed guidance and major tech earnings.
Top Stories
