• Bitcoin (BTC) has been stuck in a $16.92K – $16.45K range for over 10 days, resulting in limited volatility and volume.
• The support at $16442.38 is currently being tested and could be broken below.
• A break out above the 23.6% Fib level of $16,766.50 could invalidate the bearish bias.

Bitcoin (BTC) has been in a sideways trading range for the past 10 days, with the price stuck between $16.92K and $16.45K. This has resulted in limited volatility and volume across the entire crypto market, causing frustration for traders who prefer higher trading activity. At press time, BTC was trading at $16,587 and could break below the current support at $16442.38.

The recent rally of BTC to $18.4K was short-lived, as the price correction cleared all gains and dropped lower. There have since been four major price pullbacks, the first settling at $16,627.07 and a second at $16,442.38. The attempt to recover was rejected at $16,918.44, creating a bearish order block and influencing the third phase of correction, which settled at the 23.6% Fib level. The fourth phase of price correction has since broken below the 23.6% Fib level and could also break below $16,442.38, a previous support level.

On-chain metrics such as the On-Balance Volume (OBV) and the Relative Strength Index (RSI) are also bearish. The OBV is negative, indicating that the asset is being sold more than it is bought. The RSI has moved away from its mean and declined, indicating that buying pressure has eased. Therefore, BTC could break below $16,442.38 and retest $16765, providing short-sale targets.

However, a break out above the 23.6% Fib level of $16,766.50 would invalidate the bearish bias and could lead to a bullish rally. If the king coin manages to break above this level, it is likely that the entire crypto market will follow suit and experience a surge in trading activity. Until then, traders should keep an eye on the $16,442.38 support level and the 23.6% Fib level of $16,766.50 for any possible breakouts.