Bitcoin trades in narrow range as market awaits breakout: analyst

Bitcoin is effectively in a holding pattern. The market lacks conviction, with price repeatedly rebounding between well-defined support and resistance levels but failing to establish a sustained trend in either direction.

That kind of range-bound action typically reflects hesitation from both buyers and sellers, often ahead of a larger move.

The cryptocurrency has remained confined within a defined price band, with neither buyers nor sellers establishing clear control, according to analysis from crypto analyst DrBullZeus posted on social media.

The analysis indicates Bitcoin has repeatedly tested the same support and resistance zones on the 1-hour candlestick chart. The price has oscillated between a mid-range support level and an upper resistance band below a key overhead level, with multiple attempts to break through either zone failing to produce sustained movement.

Short-term breakouts have stalled quickly, while pullbacks have not developed into deeper corrections, according to the technical analysis. The pattern suggests buyers step in near support levels while sellers defend resistance, containing price volatility.

The next directional move depends on how Bitcoin reacts at two key levels, the analysis stated. On the upside, a resistance zone below a key overhead level represents the main barrier. A sustained break above this area could signal buyers are gaining control and potentially allow for movement toward the next price target, according to the analyst.

Recent attempts to move higher have stalled at this resistance zone, the analysis noted. A decisive breakout would likely attract fresh momentum and shift short-term sentiment from range-bound trading to bullish conditions.

On the downside, a mid-range support zone continues to act as a buffer against deeper losses. The range structure remains intact as long as this level holds, according to the analysis. However, a clear break below this support would shift short-term sentiment to bearish and could expose Bitcoin to a move toward lower levels where the cryptocurrency found demand in early December, the analyst stated.

At press time, Bitcoin was trading modestly higher after rebounding from an intraday low near the identified support level, according to market data.