Bitcoin prices have been in a contracting range since the Asian session’s price drop from $10,200 ran out of steam near $9,730.
Looking at the 15min chart, we can see a contracting triangle, a product of indecisive price action.
For traders, hanging tight may be the name of the game for now, as it could take another few hours or a full 24 hour period before we get a resolution – may be down or up?
The contracting volatility tells me there is likely to be a big move, but doesn’t tell the direction. So, the best thing to do is to follow the break.
A range breakdown would suggest an extension of the pullback from $10,200 and cause buyers to exit the market, possibly fueling a drop to $9,620, under which a major support is seen directly below $9,100.
On the flip side, a range breakout could bring in a fresh move higher toward $10,200. If the bulls manage to chew through sellers around that level, a bigger rally toward $10,500 could quickly unfold.