Analysts highlight the formation of a bull flag on the Bitcoin chart and suggest that the price could continue to consolidate until a major catalyst moves the market.
The general mood across the cryptocurrency market is one of anticipation on Sept. 17 as the price of Bitcoin has traded in an increasingly tighter range over the past couple of days and looks to be coiling in preparation for a move one way or another.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) has oscillated between $47,150 and $48,150 in trading on Friday as the lack of any major developments or headline-grabbing stories has led to a relatively flat day in the markets.
A recent report from Delphi Digital suggested that last week’s sudden drop in Bitcoin price caught the market off-guard and led to a significant drop in market sentiment from greed to fear, and BTC’s price performance over the past week has been been a response to that as traders cautiously re-engage the markets.
Here’s what analysts and traders are saying about the recent price action from BTC and what to keep an eye on as the market heads into the weekend.
Bull flag forms on the 4-hour chart
A positive take on Bitcoin’s price action was provided by the pseudonymous Twitter user ‘Pentoshi’, who posted the following tweet highlighting the formation of a bull flag on the 4-hour chart and a subsequent retest of a major support and resistance level at $46,800.
$BTC tell me this wasn’t a perfect bull flag into a perfect S/R test into demand
Breakout can reclaim PoB = moon soon
Keep in mind alt supply, and ETF season ahead likely to be key drivers + disclosures
4Hr chart below pic.twitter.com/1Em8mMXhOj
— Pent◎shi Wont DM You (@Pentosh1) September 17, 2021
As mentioned by Pentoshi, there are several upcoming developments that could lead to further bullish momentum in the market, chief of which is the growing list of Bitcoin ETF applications that must be ruled on by the U.S. Securities and Exchange Commission (SEC).
Pentoshi also suggested that should a breakout occur that manages to recapture the point of balance (PoB) at $49,380, that could be a signal that the market is about to go on a run, making it an important level to keep an eye on.
Bitcoin is “playing mind games” with the market
Further insight into Bitcoin’s price action on lower time-frame charts was provided by crypto Twitter trader ‘Crypto_Ed_NL’, who described the recent moves from Bitcoin as “playing mind games” with the market.
As highlighted in the chart provided, the price of BTC is consolidating below $48,000 now and has yet to provide signs of continuation, indicating caution for traders as a breakout higher is not a guarantee.
That being said, Crypto_Ed_NL doesn’t think that this latest price pullback is “how we start a bigger move down,” hinting at the possibility of a potential move higher in the near future.
Related: Next stop $85K for Bitcoin as analysts predict ‘explosive’ Q4 for BTC price action
Bitcoin on track to close at a higher weekly low
Analysis of Bitcoin’s price action on the higher weekly time-frame chart was provided by cryptocurrency analyst and pseudonymous Twitter user ‘Rekt Capital’, who indicated that Bitcoin is on track to having a favorable weekly close with a new weekly higher low if can manage to stay above $46,300.
There is a well-defined support and resistance level near $48,930 that was the source of the current struggle to break out higher, and for now, BTC looks as though it will continue to consolidate in its current range.
The overall cryptocurrency market cap now stands at $2.129 trillion and Bitcoin’s dominance rate is 42.1%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.