Bitcoin (BTC) is being squeezed into a tight trading range with neither bulls nor bears having the upper hand, and a decisive move either way will likely set the tone for the next trend going forward.
The $1,000 drop witnessed during a 24-hour period in the middle of the last week turned the tide in favor of the bears. As a result, the cryptocurrency was facing a risk of a drop to $6,000 over the weekend.
Despite expectations, the sell-off unexpectedly ran out of steam at a low of $6,119 on Saturday. More importantly, the cryptocurrency has printed higher price lows in the last four days, signaling bearish exhaustion.
Meanwhile, the bulls have not been exercising their buying power either, as indicated by the lower price highs around $6,400. So, it seems that the investor community is evenly split on the immediate prospects for the bitcoin market, leaving the cryptocurrency directionless.
That said, the direction of the range breakout will likely play a big role in determining the short-term price trend. At press time, BTC is changing hands at $6,320 on Bitfinex, representing a 0.5 percent gain on a 24-hour basis.