Bitcoin was trading in positive territory this Monday after closing its last week in severe losses. The top cryptocurrency surged 0.68 percent to $8,775 in an attempt to restore its short-term bullish bias. The small gains followed a more significant downside correction last week, wherein the price fell 9.9 percent – or by $964 – from its session open of $9,677. At its lowest, bitcoin was changing hands for $8,632.
Bitcoin located short-term support near $8,750, a level that, on five occasions, helped the cryptocurrency avoid a deeper downside correction. Meanwhile, the asset’s upside attempts remain capped by a strengthful resistance level at $10,000 – that also coincides with a long-term Descending trendline (black).
That left bitcoin under a strict trading range between $8,750 and $10,000, narrowed further by a short-term Ascending Trendline (maroon). Such triangle-like patterns typically end up birthing a price breakout. And given bitcoin’s prevailing interim bias, which is bearish, there is a risk of adverse breakout action this week.