Bitcoin Awaits Decisive Price Move as Trading Range Tightens

View Bitcoin's retreat from highs near $3,900 seen yesterday has poured cold water over the bull mood generated by Wednesday's quick recovery from lows near $3,650.

A UTC close above $3,897 would validate Wednesday's long-tailed candle and open the doors to re-test of the last week's high of $3,190.

Bitcoin has witnessed indecisive trading in the last 48 hours and would turn bullish again if prices rise above $3,897.

The crypto market leader jumped to a high of $3,897 yesterday, according to Bistamp data, having shown strength with a "V-shaped" recovery from lows near $3,650 on Wednesday.

The probability of bulls coming out victorious with a move above $3,900 is high, as the dip demand witnessed on Wednesday reinforced the high-volume bullish triangle breakout, confirmed on Feb. 19.

A UTC close above that level would validate the "Buy the dip" mentality signaled by Wednesday's long-tailed doji and open the doors to $4,190.

The average is also holding above the 200-candle MA, meaning the trend is bullish.

The bullish case would weaken if the 100-candle MA, currently at $3,778, is convincingly breached.

With the longer duration charts flashing early signs of a bullish reversal, as discussed earlier this week, the odds of BTC suffering deeper losses toward $3,400 appear low.

Bitcoin image via Shutterstock; charts by Trading View.