- Bitcoin price is stuck within a sideways ranging channel.
- The consolidation in the price is likely to lead to a breakout that could eventually touch $9,700.
Bitcoin sped through the weekend session nurturing a sideways action between the recent high at $9,616 and the most recent low at $9,140. All the minor bearish corrections were also contained above the accelerated trendline (dotted line).
In the meantime, Bitcoin teeters at $9,403 in the wake of a subtle 0.84% rise on the day. The Asian session on Monday has been characterized by increased volatility amid a building bullish trend.
Looking at several technical indicators, BTC/USD is likely to last longer trading in the sideways trend. The Relative Strength Index (RSI) continues to trade in a lower low pattern. However, the indicator has contained downward movement above 50, allowing the bulls to be relatively in charge.
In the event the bulls force a breakthrough past the resistance at $5,500, there is a chance that Bitcoin could sustain gains above $9,600 before coming to a stop around $9,700. On the other hand, lower corrections are bound to find support at $9,140, the 61.8% Fibonacci level, the 50 SMA on the 4-hour chart and the confluence formed by the 50% Fibo and the 100 SMA at $8,500.
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