The price action seen by Bitcoin throughout the past couple of days and weeks has been rather boring, with the benchmark cryptocurrency caught within a firm bout of sideways trading that has offered little insight into its mid-term outlook.
Bulls were able to defend against a break below a crucial level yesterday, with the recent dip below $10,200 being met with serious buying pressure that ultimately led its price to rally back up towards the upper-$10,000 region.
After facing some intense selling pressure at $10,800, BTC has been caught within a bout of sideways trading, with bulls and bears reaching an impasse as the market heads into its weekend trading session.
It’s not unusual for the market to see heightened volatility throughout the weekends. How it trends throughout this two-day period tends to set the tone for the week ahead.
One analyst observed in a recent tweet that Bitcoin is trading firmly within its Ichimoku Cloud at the present moment.
The upper and lower boundaries of this cloud define its near-term trading range, and which of these levels is broken first should provide insights into where it will trend next.
Bitcoin Kicks Off Fresh Consolidation Phase Between $10,500 and $10,800
At the time of writing, Bitcoin is trading down marginally at its current price of $10,600.
This marks a notable decline from daily highs of $10,800 that were set yesterday when bulls attempted to reverse the recent downtrend.
The selling pressure found at this level proved to be somewhat significant, however, as it instantly sparked a slight downturn that led its price into the $10,500 region.
In the time since, it has been caught within a bout of sideways trading that has offered little insight into its near-term trend.
Analyst: BTC’s Cloud Highlights the Key Levels to Be Watching
While looking towards Bitcoin’s Ichimoku Cloud indicator, one analyst explained that the crypto is trading firmly within the cloud, with the upper and lower boundaries of this indicator highlighting the key levels to watch in the near-term.
“1D BTC: Still inside of Cloud aka anything goes within the range… entries im watching: above green blob? Long below green blob? short,” he concisely stated.
Image Courtesy of Josh Olszewicz. Chart via TradingView.
As seen in the above chart, this means that the crucial levels that could determine Bitcoin’s near-term outlook sit at roughly $10,100 and $11,300 at the present moment.
This range will narrow as time drags on.
Featured image from Unsplash. Charts from TradingView.