Here’s Why Bitcoin is on the Cusp of Seeing Massive Volatility

Spread the love
Bitcoin has been caught within a persistent bout of sideways trading throughout the past few days, with the selling pressure seen above $19,000 allowing bears to spark multiple strong selloffs throughout the past couple of weeks.

These rejections have all resulted in the cryptocurrency forming a series of higher-lows, which is an incredibly bullish technical pattern that could indicate that serious upside is imminent if held over an extended period of time.

This technical strength has certainly struck a blow to bears, but the selling pressure between $19,500 and $20,000 is still significant and may continue hampering its growth in the days and weeks ahead.

The consolidation seen due to this recent battle between buyers and sellers may not last for too much longer.

One trader is now noting that the crypto is nearing the apex of a massive triangle formation that may give rise to it seeing some tremendous volatility in the near-term.

RECOMMENDED READ:  "What I really think of Bitcoin," is gold-like, "but the policymakers won't let it be-Ray Dalio.

These patterns typically result in bull-favoring breakouts, which could mean the next push higher will be swift and violent.

Bitcoin Consolidates as Bulls Defend $19,000

At the time of writing, Bitcoin is trading down marginally at its current price of $19,160. This is around where it has been trading throughout the past few days.

$19,000 has been a pivotal level for BTC, as breaks above and below this level seem to be trend-defining events.

Where Bitcoin trends in the mid-term will likely depend on its continued reaction to $19,000, as a sustained bout of trading above or below this level could provide serious insights into its mid-term outlook.

The key downside support to watch exists at roughly $18,600, with its next resistance level sitting at $19,400.

Analyst Claims BTC is on the Brink of Seeing Massive Volatility 

One analyst explained in a recent tweet that Bitcoin is on the brink of seeing some massive volatility in the days ahead.

RECOMMENDED READ:  $1.4M in Bitcoin Transactions: New High for Argentina as Confidence in the Peso Tanks

He is pointing to a triangle formation that has been shaping up following the cryptocurrency’s recent decline to lows of $16,400.

“When uncertain about the direction, I always switch to linear $BTC chart to filter out the market noise. The price essence shows clear consolidation which is contracting in the form of a triangle. Nearing the apex, today I’d expect big breakout and big volatility. Set stops fam,” he said while pointing to the below chart.

Bitcoin

Image Courtesy of CryptoBirb. Source: BTCUSD on TradingView.

The coming few days should offer insights into the long-term importance of this forming triangle pattern on Bitcoin’s price action.

Featured image from Unsplash.
Charts from TradingView.

 440 Interactions,  2 today

READ ALSO:
Why bitcoin price likely to drop further

Bitcoin's latest price drop was not sudden, particularly because there were signs on the charts. In reality, there were many Read more

Bitcoin price picks up $50K as investor voice relief for ‘positive correction’

Time to ruminate is just what's needed after an all-time high of nearly $60,000, argues Ark's Cathie Wood. Bitcoin (BTC) Read more

Jack Dorsey’s Square buys more Bitcoin worth $170M

Jack Dorsey's Square now owns some 3,318 more BTCs. Financial services outfit Square just announced that more bitcoin has been Read more

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact Us

%d bloggers like this: