Bitcoin is ‘playing mind games’ as its price coils into a tighter range

The cryptocurrency market is feeling anxious about Sept. 17. As the price of Bitcoin has been trading in a tighter range in the last few days, it looks like the market is preparing for a move in one direction or the other.

Cointelegraph Markets Pro and TradingView data show that Bitcoins price fluctuated between $47.150 and $48,150 on Friday due to lack of major developments and headline-grabbing stories.

1-day chart of BTC/USDT Source: TradingView

Delphi Digital recently reported that the sudden drop in Bitcoin prices last week caught the market by surprise and caused a substantial drop in market sentiment, from greed to fear. BTCs price performance in the past week was a result of that reaction as traders cautiously reengage the markets.

Fear & Greed index, 7-day moving average. Source: Delphi Digital

Here are the opinions of traders and analysts about recent price movements from BTC. Also, what to watch out for as the market heads into weekend.

On the 4-hour chart, bull flags form

The pseudonymous Twitter user “Pentoshi” posted this tweet, which highlighted the formation of a bull Flag on the 4-hour chart. It also highlighted a subsequent retest at $46,800 of a major support/resistance level.

$BTC tell me this wasnt 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
— Pent*shi Wont DM You (@Pentosh1) September 17, 2021

Pentoshi mentioned that there are many upcoming developments that could increase bullish momentum in market. The most important of these is the growing number of Bitcoin ETF application that must be ruled by the U.S Securities and Exchange Commission (SEC).

Pentoshi suggested that a breakout that reaches the PoB at $49,380 could signal that the market may be on the move. This is an important level to watch.

Bitcoin is playing mind games with the market

Crypto Twitter trader Crypto_Ed_NL” provided further insight into Bitcoins price movement on lower time-frame charts. He described recent Bitcoin moves as “playing mind games with the market”.

The chart shows that the price of Bitcoin is currently consolidating below $48,000 and has not shown signs of continued movement. This is a warning to traders that a breakout higher is unlikely.

Crypto_Ed_NL does not believe that this price pullback is “how to start a bigger movement down”, hinting at the possibility for a move higher in the future.

Related: Next Stop $85K Bitcoin, Analysts Predict explosive Q4 for BTC Price Action

Bitcoin poised to close at a lower weekly low

Analyse of Bitcoins price action in the higher weekly chart was done by crypto analyst and pseudonymous user on Twitter, Rekt Capital. He indicated that Bitcoin is on track for a favorable weekly close with an additional weekly lower low if it can stay above $46,300.

The support and resistance levels are well-defined at $48,930. This was the source of the current struggle for higher breakouts. For now, BTC appears to be able to maintain its current range.

The total cryptocurrency market is now worth $2.129 trillion, and Bitcoins dominance rate of 42.1%.

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