- 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