Bitcoin‘s (BTC) price is consolidating in a narrow range at press time and could regain bullish momentum above $8,350, technical charts indicate.
The leading cryptocurrency moved back above $8,000 on Friday as expected and was seen rising to recent highs above $8,500 over the weekend.
However, BTC has traded in a sideways manner in the last 60 hours. The upside has been capped around $8,300 and dips to $8,050 have been short-lived, according to Bitfinex data.
Despite the bull breakout, the price consolidation has neutralized the immediate bullish outlook, yet it is still too early to call a bearish reversal. Further, buyers may feel emboldened if the $250 trading range is breached to the upside, resulting in a resumption of the rally.
As of writing, BTC is changing hands at $8,170 on Bitfinex.
BTC witnessed a descending broadening channel breakout on Friday – a continuation pattern – which signaled a revival of the rally and opened the doors to a re-test of $8,507 (July 24 high).
However, the bullish move failed to materialize and the cryptocurrency ended up creating a sideways channel over the weekend, as seen in the above chart.
An upside break of the sideways channel now would validate the descending broadening channel breakout and allow a rally to 200-day moving average (MA) of $8,468. On the other hand, a move back into the descending broadening channel could prove costly…