Bitcoin Price Showing Hidden Signs of Reversing

This week Bitcoin continued to trade within a tightly defined range and at the time of writing the price is flat.

The wider market remains in a similar position, although some altcoins like XRP have slightly outperformed Bitcoin over the past 24 hours.

Support has now been found at $6,500 which was a critical bullish rejection level in the first half of the year and is demonstrative of a high volume node on the VPVR.Bitcoin is currently trading up against previous support which has flipped to resistance and the Doji candlestick is a clear sign of indecision in the market as traders are pushing price within a clear range and coming back to the center.

Bitcoin price can either reverse course or find continuation of the previous candle but ultimately, the current price action defines the week to date quite nicely.

Moving averages provide useful insight The 50 and 100-week moving average are in the process of crossing bullish which has only occurred a few times in Bitcoin's history and has signaled an impending upside move.

The daily chart clearly shows the downward trending channel in which Bitcoin has spent months trading, defined by lower highs and lower lows.

The 4-hour chart shows that Bitcoin is trading within a horizontal range between $7,900 and $6,500 and the digital asset has found support at the equilibrium of the two local extremities.

If the bulls can reach out and close in the upper $7,000s, Bitcoin price will complete an Adam and Eve pattern, which would imply that a move well into the $8,000s and as high at $9,000 would be possible.

Looking forwardIn summary, the market remains in a downtrend so any bullish signs must be taken somewhat lightly.

The likely outcome is that there will be more volatility within this current consolidation before Bitcoin makes more of a definitive move to retest previous critical weekly support and resistance levels.