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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Bitcoin prices trade sideways – is this make or break for BTC?

Bitcoin prices remain rangebound - 2017 high holds as critical resistance; BTC/USD threatens trendline resistance, but bears fight back and USD weakness boost stocks while cryptocurrency lags.

Source: Bloomberg

Bitcoin technical analysis

Bitcoin prices have continued to consolidate within a narrow range, formed by key technical levels of prior moves. With earnings season currently underway, resilient earnings from Goldman Sachs and a weaker US dollar allowed major stock indices to hold gains, driving equity futures higher.

Although there has been a positive correlation (they generally move in the same direction) between stocks and cryptocurrency throughout the year, BTC/USD has remained constrained by technical resistance which continues to hold firm.

With a broader range forming between 17,792 (the 78.6% Fib of the 2020 – 2021 move) and 20,500, the 19,666 has proven to be another big level for both the short and long-term move.

For those who may recall, this level was the prior all-time high that capped the upside move in December 2017 and then again in December 2020. Now, almost two-years later and this level continues to hold bulls at bay.

Range fundamentals

Bitcoin (BTC/USD) weekly chart

Source: TradingView

As bulls struggle to clear trendline resistance (from the 2021 high), the daily chart below further highlights the short-bodied candles that have been forming over recent weeks. With a tighter range forming between 18,183 (support that has held since June) and 19,666, a break of either side could fuel momentum, opening the door for a breakout.

Bitcoin (BTC/USD) daily chart

Source: TradingView

However, with the above-mentioned range currently intact, the below levels may provide an additional catalyst for price action.

Bitcoin (BTC/USD) key levels

Chart created by Tammy Da Costa

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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