Bitcoin has found itself caught within a firm consolidation phase over the past several days, which has come about following the cryptocurrency’s recent rejection at $9,200. Following the downwards movement that resulted from this rejection, BTC has found some stability around $8,600.
In the near-term it is important to note that Bitcoin has found some notable support around $8,500, although its inability to post any decisive bounce following its recent drop does signal that further downside could be imminent.
It is likely that investors and analysts alike will soon know whether or not the markets will soon see an extension of Bitcoin’s recent upwards momentum, as one key technical indicator is now signaling that a massive movement could be imminent in the coming hours.
Bitcoin Gearing Up for a Major Movement as Price Continues Trailing Sideways
The strong and swift rejection at this level has – in the eyes of some analysts and investors – spelled trouble for what’s to come next for the cryptocurrency, although it is important to note that bulls have been able to absorb a significant amount of the recent selling pressure.
BTC now appears to be forming a relatively tight trading range between $8,500 and $8,750, with significant support at the former level and resistance at the latter level.
How the crypto trends next will likely depend on which of these levels it breaks above first, and until then trying to predict which way it will move in the short-term is difficult.
Big Chonis – a popular cryptocurrency analyst on Twitter – explained in a recent tweet that he believes Bitcoin’s Bollinger Bands are currently signaling that the crypto will soon see a massive movement.
It is highly likely that the next mid-term Bitcoin trend will be determined by this upcoming volatility, and whether or not it leads BTC to break above or below either of the aforementioned trading ranges.