The Bitcoin (BTC) price has had low volatility over the past six weeks, staying in the $9,300 to $9,900 range most of the time. This has led traders to warn that a massive price movement is likely in the short term.
Over the past 12 months Bitcoin has introduced two extended ranges. One was in June 2019 and the other in December 2019. In both cases the price of Bitcoin showed a 40% movement in the following months.
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Where will the big move take place?
Traders generally foresee two short-term scenarios for the number one rated digital asset in CoinMarketCap. One is a rejection at $9,200, followed by a drop to $7,000 and the other would involve the price remaining at $9,200 and then retesting at $10,500 to potentially see the start of a new rally.
Whatever direction the price of Bitcoin takes in the coming weeks, analysts anticipate a very volatile trend for the cryptomoney market.
A technical analyst known as Crypto Birb wrote:
„He’s been consolidating for a month and a half. This is going to be a monster move for BTC soon.“
Similarly, Pentarhudi, a Bitcoin trader who predicted the sharp downward trend of Bitcoin in February, said that we are on track to see an explosive share of Bitcoin’s price.
Pentarhudi explained that the technical structure that Bitcoin is now showing is a triple top or range block.
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Bitcoin’s price was rejected at $10,500 in October 2019, February 2020 and June 2020. A triple top formation was created on the BTC daily chart that is usually a bearish pattern.
If the price of Bitcoin continues to fall in the coming weeks and it is confirmed that it is a triple bottom, Pentarhudi warned that the price of Bitcoin could fall as low as $6,000.
The analyst said:
„Triple bump in the paper… Beaten pattern. It will shoot to about $8,000 with a target of $6,000. Or triple maximum or range lock.
Bitcoin is also entering a „fear zone“ in several investor sentiment indices, suggesting that traders are becoming increasingly cautious about the short-term price trend of Bitcoin.