Bitcoin has found itself in a state of pause as the weekend progresses, with its price showing minimal movement within a well-defined trading range. The current market environment is marked by muted volatility and a lack of strong momentum, leading many traders to adopt a cautious approach focused on specific scalp levels instead of anticipating significant price swings.
Analyst Lennaert Snyder highlighted this phenomenon, noting that Bitcoin has entered a phase he describes as “weekend chop.” He does not foresee any major trending movements in the immediate future but has identified several short-term trading scenarios that could capitalize on potential volatility. Snyder points out a critical resistance level around $88,865. If Bitcoin approaches this level and fails to sustain it, he is prepared to execute scalp-short trades. On the flip side, for those looking to invest long, he is monitoring the $87,420 mark, which serves as both a historical support zone and the start of a previous price surge. A successful test of this support accompanied by recognizable reversal patterns could signal a lucrative scalp-long opportunity.
Conversely, Snyder warns that if the market breaks below this key support, it could lead to a drop toward the $85,890 lows. Should that scenario unfold, he plans to pivot towards looking for potential reversal signals before entering long positions again.
Snyder also mentioned a pivotal breakout trigger: if Bitcoin manages to break above and sustain a price point at $89,375, it could pave the way for a move towards the $90,400 region. However, he does not anticipate this breakout happening before Monday, advising traders to remain patient and enjoy their weekend while keeping alerts set for potential market shifts.
Adding to this sentiment, analyst Daan Crypto Trades remarked on Bitcoin’s continued stagnation as it enters the weekend. He emphasized that this period may serve as an opportunity for traders to take a step back and refresh their mental strategies before the market dynamics possibly shift in the upcoming week. Despite a few fluctuations, Bitcoin’s price has predominantly remained stable over the past few weeks, trapped within its established range and devoid of the momentum required to break either upwards toward new highs or downwards into a deeper correction.
Daan Crypto Trades further cautioned that the approaching Christmas holiday period is likely to thin market activity, resulting in more erratic price movements. As traders brace for the next week, many are choosing to adopt a wait-and-see approach, prioritizing patience and precision in their trading strategies.
