Bitcoin could be set to break into a new trading range after weeks of being confined between the $9,000 to $10,000 levels.
Bitcoin price chart analysis shows that a bullish breakout above the $9,800 level could see the cryptocurrency testing the $11,500 level.
Bitcoin medium-term price trend
Bitcoin experienced more volatility last week, following a rally towards the $9,800 area, and then a sudden reversal to the $8,800 level.
The record amount of Bitcoin option expirations last week also left traders unsure as to in which direction the pioneer cryptocurrency will trade.
A break from the $8,700 to $9,800 price range should see a major directional move taking place in BTC/USD.
Bitcoin price technical analysis shows that the BTC/USD could rally towards the $11,500 area if the $9,800 resistance area is broken this week.
The daily time frame continues to show that an ascending triangle pattern remains valid, despite last week's price drop.
Traders may wait for a confirmed breakout above the $9,800 level to initiate new BTC/USD buy positions, with the $10,500 and $11,500 the upside targets.
To the downside, a loss of the $8,700 may see BTC/USD falling towards the $8,100 and possibly the $7,000 level.
Bitcoin short-term price trend
Bitcoin price technical analysis highlights that the bulls are only in control while the price trades above the cryptocurrency’s 50-day moving average, around the $9,400 support level.
The lower time frames currently show that a bullish inverted head-and-shoulders pattern has formed.
According to the size of the bullish reversal pattern, the BTC/USD pair could rally towards the $10,100 level.
A sustained break from the $9,550 is currently required to activate the mentioned bullish price pattern.
Bitcoin technical summary
Bitcoin price chart technical analysis highlights that a breakout above the $9,800 level could see a rally towards the $11,500 level. A major range breakout would then take place.