[ad_1]
Since Bitcoin (BTC) fell below its previous support level of $ 3,550 last week, cryptocurrency has experienced a side trading crisis at current price levels. The recent rise in Bitcoin prices seems to confirm the presence of a new resistance level of $ 3,500, but it has also established a support level of $ 3,400 over the past two weeks.
Although the Bitcoin trade has stabilized recently, many badysts expect strong price fluctuations in the near future, as the charts show that BTC's volatility is approaching a new demand area, typically characterized by a strong fluctuation of prices.
The volatility of Bitcoin (BTC) decreases, it should increase considerably in the near future
At the time of writing this article, Bitcoin is trading slightly higher at its current price of $ 3,460. Over the past seven days, Bitcoin has traded between $ 3,400 and $ 3,500 and has reduced this range over the past two days.
This is not the first time Bitcoin has had a long period of side trading. Last September, Bitcoins experienced a similar trade situation in the $ 6,000 region, trading unevenly in a slightly larger range of between $ 6,300 and $ 6,700.
When examining the Bitcoin historical volatility index, Hsaka, a popular cryptocurrency trader on Twitter, said the volatility of cryptocurrency has fallen in a new demand area, typically characterized by a large movement lessons.
"The volatility of the BTC is testing a new demand area …. B I G M V E I N C O M I N G, he said.
$ BTC Volatility test in a new demand area.
B I G M V E I N C O M I N G. pic.twitter.com/u1YqmSy42k
– Hsaka (@HsakaTrades) February 5, 2019
An badyst expects BTC to fall significantly before starting to climb
Although the aforementioned price fluctuation may be two-way, given the fundamental weakness of the markets in their current state, badysts expect Bitcoin to incur further losses before generating sufficient buying pressure for reverse the current downtrend.
The Crypto Dog, a popular cryptocurrency badyst on Twitter, recently said he would not be surprised that the bitcoin drops to $ 1,800, which would naturally lead to the entire cryptocurrency market.
"$ 1800 BTC and $ 50 ETH would not surprise me … I do not know for sure that we will see these prices, it does not bother us whether we reach them or not … If you are in BTC $ for long time transport, DCA. If you learn to trade, survive. Reduce your risk, the gains will be easier one day, "he said.
$ 1800 $ BTC and $ 50 $ ETH would not surprise me.
I do not know for sure that we will see those prices, and I do not mind if we hit them or not.
If you are in $ BTC for the long term, DCA. If you learn to trade, survive. Keep your risk low, the gains will be easier one day.
– The crypto dog (@TheCryptoDog) February 5, 2019
Although he is considering the possibility of $ 1,800, The Crypto Dog added that he did not think that a drop to $ 1,200 was likely.
"Of course, there is always a crew of about $ 1,200. Many badysts believe that we will not see any bottom before we reach the highs of the 2013 bull market and that we will come back to this price movement that really kicked off the 2017 parabolic race … I'm not sure to go down so far, "he added.
… And of course there is always a crew of ~ $ 1200. Many badysts believe that we will not see any bottom before we reach the highs of the 2013 bull market and that we will return to this price movement that really launched the 2017 parabolic race.
I'm not so sure we're going that far. pic.twitter.com/ZVrHAW5Sgd
– The crypto dog (@TheCryptoDog) February 5, 2019
Given the likelihood of a surge in volatility, traders will probably be watching Bitcoin closely, as this may indicate whether the bear market is still going strong or will not begin to reverse.
Selected image of Shutterstock.
[ad_2]
Source link
