Bitcoin adds more than $100, remains in range above $4000

After closing two previous days with modest losses, bitcoin rebounded on Monday, lifting the BTC/USD pair up to $4333, where it was adding $117, or 2.78%, on the day.

Although the pair was able to rise on Thursday despite a stronger greenback, today's price action doesn't suggest that a new uptrend is underway as it hadn't been backed by a fundamental development. In fact, skepticism about the cryptocurrency market came under the spotlight once again. Speaking at a financial conference in Zurich, UBS Chairman and former Bundesbank president Axel Weber said, "the important function of a currency is, it’s a means of payment, it has to be generally accepted, it has to be a store of value and it’s a transaction currency. Bitcoin is only a transaction currency,” as reported by Reuters. 

Moreover, the pair seems to be struggling to find its next short-term direction as it continues to fluctuate between the $4000 and $4500 handles since September 28. Unless the pair brakes out of this range with a decisive move, it's likely to preserve its neutral outlook in the near-term.

Technical levels to consider

The first significant hurdle for the pair aligns at $4480/$4500 (Oct. 2 high/top of the consolidation channel) ahead of $4700 (Sep. 8 high) and $5000 (psychological level). On the downside, supports could be seen at $4000 (psychological level/bottom of the consolidation channel), $3650 (Sep. 25 low), $3500 (100-DMA).