Weekend Trap? Bitcoin Enters Choppy Range As Critical Trend Line Holds Below

Markets 2026-01-04 12:03

Bitcoin has entered a choppy weekend range, testing traders’ patience as price action slows and volatility compresses. Despite the sideways movement, a critical trend line just below current levels remains intact, keeping the broader market outlook cautious but far from broken.

Bitcoin Drifts Into A Typical Weekend Range

According to a recent update by Lennaert Snyder, Bitcoin has entered a typical weekend range. Weekend trading is often characterized by low liquidity and choppy price action, which can make moves less predictable and more prone to false signals. Snyder is taking a cautious approach, waiting for a clear trigger at the boundaries of this range before committing to any trades. 

Snyder notes that the $90,930 level could present a strong shorting opportunity if a liquidity sweep occurs and the price fails to hold. On the other hand, if Bitcoin demonstrates strength and manages to break above this threshold, it could signal bullish momentum, making long positions potentially attractive for traders looking to capitalize on a breakout.

Weekend Trap? Bitcoin Enters Choppy Range As Critical Trend Line Holds Below

Similarly, the lower boundary near $88,430 is critical. A sweep below this level followed by a quick reversal could offer long positions. However, if the support fails and the market structure breaks, it would likely trigger continuation shorts. These levels act as key decision points where traders can gauge whether momentum favors buyers or sellers in the short term.

Snyder emphasizes that these setups are primarily scalp trades, with lower risk exposure. The expert only executes trades when all confirmation signals align, ensuring that a clear technical rationale backs each position. 

Looking ahead, external factors could add more volatility to Bitcoin’s price action. Geopolitical tensions and the return of major market participants next week are expected to increase trading volume and momentum, potentially turning these weekend range moves into larger trends. 

BTC Holds Key Investor Tool Model Support Around $83,900

Crypto analyst Patel recently highlighted that Bitcoin is holding a key support level known as the Investor Tool Model Support, situated around $83,900, which also coincides with the 730-day moving average. This level has historically acted as a major pivot for Bitcoin, helping to gauge the broader market trend.

According to Patel, a decisive break below this support has historically signaled the start of a confirmed bear market, while holding above it typically points to a corrective phase rather than a long-term downtrend. In other words, this level serves as a critical dividing line between temporary pullbacks and structural weakness.

Currently, the $83,900 zone is a key area to watch closely. Price action around this support could determine whether Bitcoin resumes its upward trajectory or risks entering a more extended bearish phase, making it a pivotal point for decision-making in the market.

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This content is for informational purposes only and does not constitute investment advice.

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