BTCUSD: Bitcoin at crossroads as price action dials down

BTCUSD: Bitcoin at crossroads as price action dials down

As the week comes to an end, traders will be looking intently at how Bitcoin’s price will close. After a highly volatile week, it looks like Bitcoin may be running out of steam.

While at the start of the week Bitcoin’s price was below the $10,000 mark, the sentiment quickly turned bullish among investors as volatility started to spike.

This has led to Bitcoin rising up to, but not crossing the $11,000 level, which is a significant daily resistance level.

Is Bitcoin price action getting stale?

On the daily chart, Bitcoin has been forming a descending triangle, which in most cases results in a price breakdown.

However, this is not always the case and the resolution of the descending triangle pattern might take some weeks to materialize.

Source: TradingView – BTC/USD Daily Chart

The $10,200 – $10,300 range has acted as temporary support, particularly for the last two price rejections from $11,000 followed by today’s breakdown at $10,600.

On the intra-day level, as demand is being soaked up, Bitcoin prices could slip lower to the $9,800 – $10,000 level, which has acted as a strong support level in the past.

Source: TradingView – BTC/USD 4H Chart

As the upward trend fails to maintain its momentum, the upcoming week should be less volatile and Bitcoin’s price could move in a range between the support and resistance levels, as bulls and bears test each other’s resilience.

At the same time, the low volatility environment and stale price action could lead investors to turn their attention to altcoins, which have been reaching all-time lows during the past month.

Significant Bitcoin levels to watch

Support: $9,800-$10,000

Resistance: $10,600-$10,800

The bullish case for Bitcoin could take shape if buyers step in with massive volume, quickly breaching the $10,600 followed by the $11,000 level.

Until then, the price action in the short and medium-term looks to be neutral with a slight downside.

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