Bitcoin is 'playing mind games' as price enters a tighter range

On Sept. 17, as the price of Bitcoin has been trading in an increasingly narrow range over the past few days, the general sentiment across the cryptocurrency market is one of anticipation, which appears to be consolidating, poised to move in some way.

The price of bitcoin fluctuated between $47,150 and $48,150 on Friday, according to Cointelegraph Markets Pro and TradingView, as the absence of any major developments or headlines kept the market relatively flat.

BTC/USDT 1-day chart Source: TradingView

A recent report from Delphi Digital shows that Bitcoin's price performance over the past week is a response to last week's sudden drop in Bitcoin's price that caught the market off guard, causing sentiment to shift from greed to fear, as traders cautiously re-engage in the market.

Fear and Greed Index and 7-day moving average Source: Delphi Digital

Here's what analysts and traders are saying about Bitcoin's recent price action, and what the market needs to pay attention to heading into the weekend.

A bullish signal is forming on the 4-hour chart

Anonymous Twitter user “Pentoshi” gave a positive take on Bitcoin’s price action with the following tweet, highlighting the formation of a bullish signal on the 4-hour chart followed by a retest of the major support and resistance at $46,800.

Bitcoin tells me it's not a perfect bull signal, it's a perfect S/R test for demand

Breakouts can recapture the Point of Balance (PoB)

Keeping altcoin supply in mind, and future ETF seasons could be key drivers + disclosures

— Pent◎shi Wont DM You (@Pentosh1) September 17, 2021

As Pentoshi mentioned, there are several upcoming developments that could lead to further bullishness in the market, chief among them the increasing number of Bitcoin ETF applications that must be adjudicated by the U.S. Securities and Exchange Commission (SEC).

Pentoshi also said that if there is a breakout and manages to reclaim the $49,380 point of balance (PoB), it could be a signal of impending market strength, an important level to watch.

Bitcoin is 'playing mind games' with the market

Crypto Twitter trader "Crypto_Ed_NL" provided further insight into Bitcoin's price action in lower time frames, describing Bitcoin's recent moves as "playing mind games" with the market.

As the chart shows, the price of Bitcoin is now consolidating below $48,000 with no signs of sustaining it yet, suggesting that traders should be cautious as breaking highs is not a guarantee.

Still, Crypto_Ed_NL doesn’t think the recent price pullback is about “how we start a bigger decline,” saying higher moves are possible in the near future.

Bitcoin Poised to Close Higher Weekly Lows

Cryptocurrency analyst and pseudonymous Twitter user Rekt Capital provided an analysis of Bitcoin's price action on the higher weekly time frame charts, saying that Bitcoin could have a favorable upside if it manages to hold above $46,300. Closed the week with a new higher weekly low.

With a well-defined support and resistance level around $48,930, which is the source of the current struggle to break highs, Bitcoin looks set to continue consolidating within its current range.

At present, the entire cryptocurrency market value is 2.129 trillion US dollars, and the dominance rate of Bitcoin is 42.1%.

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