Bitcoin is playing a “brain hack” market – what’s next?

Bitcoin price has been trading in an increasingly narrowing range for several days since September 17, and appears to be gaining momentum in preparation for a move in both directions.

TradingView data shows that Bitcoin price fluctuated between $ 47,150 and $ 48,150 during Friday’s trading session. This steady oscillation is due to the lack of important developments or attention-grabbing stories.

BTC / USDT 1-day chart. Source: TradingView

A recent report released by Delphi Digital showed that the sudden drop in Bitcoin price last week took the market by surprise, causing a significant drop in market sentiment from greed to fear. BTC price action over the past week has been a cautious re-entry reaction from traders.

Fear & Greed Index and 7-day MA. Source: Delphi Digital

Here’s what analysts and traders are saying about recent price action and what to look out for as the market heads for the weekend.

Bull flag is forming on the 4-hour chart

Analyst ‘Pentoshi’ gave a positive signal on Bitcoin’s price action, with the following tweet highlighting the formation of a bull flag on the 4-hour chart and a retest of key support / resistance levels at 46,800.

“BTC Tell me this is not a perfect bull flag for perfect S / R testing. Breakout could get PoB back soon. Keep an eye on the altcoin supply and the upcoming ETF season will likely be the main driver. “

https://twitter.com/Pentosh1/status/1438657696882905092?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener

Bitcoin is playing a game of “brain hacking” the market

Further insight into Bitcoin’s price action on lower timeframe charts was provided by trader Crypto_Ed_NL, who described the recent movements of BTC as a “brain game” of the market.

“BTC is playing low TF mind games and is consolidating. The decline is not very attractive and there is no continuation. Although it is pulling back from the red box, I don’t think this is the start of the downtrend. Let’s take a look at the liquidity first. “

https://twitter.com/Crypto_Ed_NL/status/1438760111011467267?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener

As highlighted in the graph, BTC price is currently consolidating below USD 48,000 and is not yet showing any signs of the trend continuation, suggesting that traders are cautious as an upward breakout is not warranted. However, since the downward move isn’t the start of a major decline, it is more likely that the BTC price will rise in the short term.

Trader Rekt Capital analyzed Bitcoin’s price action on a weekly timeframe chart and found that Bitcoin is headed for a cheap week with a new weekly higher low when it can hold above $ 46,300.

“An initial rejection in the red resistance area for BTC. All in all, BTC is on course for a cheap weekly close above the orange demand zone as well as a new weekly higher low. Bitcoin is expected to consolidate further in the red-orange area. “

https://twitter.com/rektcapital/status/1438864982830104579?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener

There is well-defined support and resistance near $ 48,930 which has resulted in a struggle to the upside and for now it looks like BTC will continue to consolidate within that range.

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Annie

According to Cointelegraph

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