Bitcoin and the aggregated crypto markets have once again incurred an influx of volatility that has extended the instability that was first incurred just over one week ago when BTC sharply moved towards $11,000 but failed to sustain this movement.
Now, analysts are noting that Bitcoin’s recent trading action has allowed it to form a firm trading range that is likely to persist for the near-future, which may give traders insight into where the volatile crypto is heading next.
Bitcoin Faces Choppy Trading Session Between Tight Trading Range
At the time of writing, Bitcoin is trading up nominally at its current price of $9,560, which is up slightly from its daily lows of $9,200 and is down slightly from its daily highs of nearly $9,700.
Over a one-week period, BTC has found itself in a wide range between $9,200 and $10,400, forming multiple “bart” patterns through this time period. Importantly, it does appear that Bitcoin has found strong support around $9,200.
This volatile week has marked an extension of the downwards pressure that Bitcoin first incurred in late-June when BTC sharply moved to $13,800, which has significantly bolstered bears and has jeopardized the upwards momentum that Bitcoin has faced since earlier this year.
Additionally, this choppy price action over the past several weeks has allowed BTC to establish a new price range between roughly $9,350 and $9,650, which is likely to persist for the near-future.
“$BTC tapping 9350 & 9650 in same 15 minute candle. Tough to say whether the case extension is outright bullish or bearish,” Luke Martin, a popular cryptocurrency analyst, noted in a recent tweet, referencing the ongoing Bitfinex court case as one possible factor behind the recent volatility.
BTC Monthly Must Close Bullish or Else Drop to $7k Could be Imminent
In only a few days, Bitcoin will be closing its monthly candle, which is highly likely to elucidate whether or not the markets will face further downwards pressure in the near-future.
DonAlt, a popular cryptocurrency analyst on Twitter, spoke about the importance of this monthly close in a recent tweet, explaining that a close below $10k could spell trouble for the cryptocurrency.
“$BTC monthly: Bulls have 3 days to push BTC above 10k to make this monthly look godlike. I’ll be bullish due to the weekly being at support as long as the monthly closes above resistance. If it doesn’t I’ll assume 7.7k is in play, if it does, there is only free air above us,” he explained.
As the week kicks off and the month wraps up, it is highly probable that analysts and traders alike will soon gain better insight into which direction the markets are heading next.