Bitcoin’s trading range has recently tightened significantly, reaching its narrowest point in months. This development has caught the attention of market analysts and experts, as it often signals an impending breakout that could result in a substantial price movement. The reduced volatility and restricted trading range during this consolidation phase create an atmosphere of anticipation and speculation among traders.
The contraction of Bitcoin’s trading range has sparked discussions about the timing and magnitude of the upcoming breakout. Market observers suggest that the current market conditions could potentially pave the way for a breakout in either direction. The latest BTC/USD is currently trading at $26,798 with a bearish dominating sentiment. Bulls are patiently awaiting the chance to reassert their dominance and push BTC prices higher. The token is down 0.40% in the last 24 hours, and it has traded within a range of $27,000 – $26,549 since yesterday.
Bitcoin price analysis 24-hour chart: Sluggish price action confirms a bearish sentiment
The 24-hour chart reveals a bearish sentiment. BTC/USD price seems to have held on to the support level of $26,549 despite multiple attempts by bears to push it lower. The Bulls are holding and defending the current support range in anticipation of a potential breakout. If the bullish pressure persists, we may see a break of the resistance at $26,986. The circulating supply of BTC tokens stands at 19,380,431, with a market capitalization of $519 billion. With a trading volume of $9.73 billion, the daily trading volume is up by 21.55 percent.
Chaikin Money Flow score is -0.06, indicating increased selling strength in the market. The CMF crossed the 0 mark after the price received a rejection from the $26,986 level. BTC price still trades below 20,50,100, and 200-day EMA, indicating bearish momentum in the price. The Bollinger Band, on a daily time frame, is also showing bearish signs. The Upper Bollinger Band is trending lower at $29,306 but still above the spot price. The lower band at $ 25,825 is trending higher and pointing towards a breakout. The RSI is trading at 41.37, with a bearish crossover indicating an imminent downside movement.
Bitcoin price analysis 4-hour chart: Hourly chart gives bearish signals for the market
The 4-hour chart Bitcoin price analysis shows that both the bulls and bears have shown strong competition over the past couple of days. BT’sC price is losing bearish momentum as buyers have started to jump in the market. The bullish rally for BTC Token started at the beginning of 2023 and created a high of $31k in April. The price corrected the move, and the high triggered a drop.
The Bollinger bands on the 4-hour chart are showing bearish signs, with the upper band trending lower at $27,148 and the lower band being flat at $26,660 indicating a range-bound movement. The RSI is still indicating bearish momentum and is trending lower at 46.09 points, and if bears persist, the oversold area can be reached soon. The Chaikin Money Flow index is also giving bearish signs with a score of -0.04, which confirms increased selling pressure in the market.
Bitcoin price analysis conclusion
From the above chart, the Bitcoin price analysis reveals that the market is likely to remain range bound in the near future. The bears have taken control of the market, but BTC prices are still receiving support from buyers at $26,549. If the bulls continue to show up and gain momentum, a breakout above $26,986 could be seen soon. On the other hand, if sellers manage to push prices below $26,549, then the next level of support could be at around $26,300.
While waiting for Bitcoin to move further, see our Price Predictions on XDC, Polkadot, and Curve
