- Bitcoin’s consolidation phase has persisted despite many analysts anticipating volatility during yesterday’s weekly candle close.
- Cryptocurrency still trades in the lower $ 9,000 region and shows little sign of gaining any strength
- However, analysts now point out that you could soon see wild volatility, as BTC Bollinger Bands have not been as tight as they are now since November 2018.
- This was just before the cryptocurrency was facing the sell-off that caused it to slide towards $ 3,000.
- Some analysts point out that signs suggest that this volatility will favor buyers.
Bitcoin and the aggregate cryptocurrency market have shown mixed signs in the past few days and weeks.
Although most alternative currencies remain in firm bear territory, BTC appears to be in a precarious position as it shifts to the lower end of its long-standing trading channel.
Analysts now point out that the benchmark cryptocurrency may soon provide the cryptocurrency market with a decisive trend, as an indicator suggests that the cryptocurrency is preparing to make a massive move.
As it looks towards its lower time frames, Bitcoin is expressing some signs of strength. This could mean that the next move will favor buyers.
Historically tight Bitcoin Bollinger Bands; Signal volatility looming
As of writing, Bitcoin is trading marginally at its current price of $ 9,310, marking a noticeable rise from the recent lows of $ 9,100 that settled early yesterday morning after the rejection it faced at $ 9,400.
Bull’s ability to hedge against a $ 9,000 decline is undoubtedly positive, and the slight uptrend seen by crypto in the past few hours bodes well for its near-term outlook.
However, this price action still marks a side trading episode, but Bitcoin’s Bollinger Bands suggest that this will soon come to an end.
While pointing out this technical formation, a popular analyst explained that the last time cryptocurrency bands were so tight was just before the fall of November 2018.
“1D BTC: The bands have not been so tight since November 2018,” he said.
Image Courtesy of Josh Olszewicz. Chart via TradingView.
The low strength of the BTC time frame may strengthen the medium-term outlook
Bitcoin is showing some signs of low resistance in the time frame, which, if based on bulls, could help boost its medium-term outlook.
A trader spoke to this in a recent tweet, noting that BTC’s latest low-range sweep and subsequent bounce is bullish, but its reaction to Monday’s high of just under $ 9,400 is now the key level to watch.
“The fact that we didn’t get any follow-up after sweeping the highs in the gray circle, but we swept the lows and pumped is a bit optimistic.” Waiting for at least a test from the last few weeks on Monday, which will be an important decision point, “he explained.
Image Courtesy of George. Chart via TradingView.
How Bitcoin responds to these levels in the short term could help provide information on which side will favor this impending volatility.
Featured image from Shutterstock. Charts from TradingView.
