- Bitcoin grinds sideways in a narrow range between $8,500 and $8,600.
- The previous trend is expected to continue towards $9,000 on BTC’s reaction to the flag pattern formed.
Bitcoin price hovers above $8,500. This follows the extension of a lower leg from highs marginally above $8,700. The price action from levels roughly at $8,200 made a phenomenal recovery above several key barriers including $8,400 and $8,600.
BTC/USD is trading at $8,547 and displays an intraday loss of 0.45% as well as a relative change of -38. The prevailing trend is bearish with expanding volatility. The granddaddy of cryptocurrencies currently consolidates in a bullish flag pattern. A breakout out from this pattern is supposed to continue in the direction of the previous trend. In this case, I expect Bitcoin to rise above $8,750 resistance and grind towards $9,000.
Meanwhile, $8,500 is coming out as a key support area. If it fails to hold, $8,400 and the 100 Simple Moving Average (SMA) on the four-hour chart at $8,250 will provide the much-needed support. Besides, further dips under $8,000 are not expected to go beyond $7,700 (major support area).
BTC/USD four-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.