Trapped Below $7K: Is Bitcoin Prepping for a Big Breakout?

Bitcoin has spent a better part of the last 24 hours trading a tight range around $6,800.

The cryptocurrency has been restricted to an increasingly narrow price range for almost a week now, with neither the bulls nor the bears able to force a big move in either direction.

According to technical theory, the wider the range and the longer the duration of the consolidation zone, the more violent the breakout tends to be.

The above chart shows, the narrowing price range is almost a week old.

The range high is $7,510 and the range low is $6,425.

Bitcoin could see at least a $1,000 dollar move on either side, depending on nature of the breakout.

Only a convincing break below $6,570 would revive the bearish view.

On the bull side, an upside break of the triangle may not necessarily bring a $1,000 rally as resistance is lined up at $7,189 - a strong resistance point established by the high volume sell-off.

A potential bear flag breakdown could be considered as a warning the bitcoin is set to move below triangle support seen at $6,570.

If the bulls take charge, a high volume move above $7,189 will likely set the tone for a break above $7,510 and a rally to $8,100.