Prepare for Turbulence: Here’s Why Traders Expect Bitcoin to See Major Volatility


Bitcoin has entered what appears to be yet another consolidation phase within the lower-$9,000 region. The crypto is struggling to garner any momentum as its buyers and sellers both reach an impasse following its recent decline.It now appears that the crypto could be gearing up for a massive movement in the days and week ahead, as it is fast approaching two key moving averages that have historically sparked immense bouts of volatility.If history repeats itself, BTC could see an extended bout of choppy trading followed by an upwards breakout.Analysts do remain cautious about its near-term price action, however, due to yesterday’s daily close breaking its market structure.Bitcoin Struggles to Garner Momentum as It Enters Fresh Consolidation PhaseAt the time of writing, Bitcoin is trading up just over 2% at its current price of $9,210. This marks a slight climb from daily lows of $8,800, but a decline from recent highs of just under $10,000.The cryptocurrency’s ongoing downtrend came about after an extended period of consolidation within the mid-$9,000 region.During this consolidation phase, Bitcoin’s buyers made multiple attempts to propel the crypto past $10,000, but each one was met with heavy selling pressure that subsequently led its price lower.This price decline was triggered by news of a Satoshi-era Bitcoin wallet moving 50 BTC.The wallet has previously been dormant for over a decade and sparked concerns that an early adopter could be gearing up to offload some of their holdings.It doesn’t appear that this was the case, however, but the technical damage done by the news-induced selloff appears to have altered the cryptocurrency’s market structure.One popular cryptocurrency analyst on Twitter explained that yesterday’s daily close led the crypto to sweep its highs and break its market structure.“BTC: Swept highs and broke MS on the daily close in the context of HTF resistance. Looks rough, sold some spot,” he noted while pointing to the chart seen below. Image Courtesy of HornHairsAnalysts Warn that Turbulence is Imminent Another analyst recently explained that he believes Bitcoin is bound to see some “turbulence” in the days and weeks ahead before making a trend-defining movement.He explained that the cryptocurrency is fast approaching two key moving averages, with its visit to these levels likely sparking a large move.“Expecting a bit of turbulence here… Approaching two strong resistances: – 89 ema (black) – 21 ema (green). Bias will remain bullish as long as greater trend remains inside the cloud,” he said while pointing to the pattern seen below. Image Courtesy of TeddyThe previous extended bout of consolidation seen earlier this month did result in Bitcoin posting a notable upswing that led it past $10,000.If Bitcoin remains above its cloud structure, the cryptocurrency could be well-positioned to rally higher in the days and weeks ahead.Featured image from Shutterstock.

Go to Source
Author: Cole Petersen


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.