After failing to break out from a four-week range, Bitcoin fell back and continued to trade inside it. While it displayed a sign of no trade over the past hours, a surge in volatility should be expected at any time from now.
Bitcoin continued to maintain a sideway movement after it found support at $15500 last month. Yesterday, the leading cryptocurrency briefly touched $17424 and dropped due to a fake-out from a tight price range.
It has been trading calmly around the upper range at $17k for the past 24 hours. Since the recent price drop, it has moved from little to no volatility as it forms a choppy price action.
The current trading price level seemed to pose a lot of threat to the bulls since the beginning of this month. From a technical standpoint, BTC will likely slip back to its four weeks low range level. We can see that the buyers have failed to show further interest.
If they later show commitment, there’s still room for recovery of up to $20k. Considering the recent decrease in the crypto market, Bitcoin could resume bearish if trading positions continue to liquidate.
The ongoing consolidation in Bitcoin’s price technically indicates an imminent explosion. Where it will go is yet unknown. The price is up by 3.65% weekly, with a dominance of 38.4% at press time.
Bitcoin Price Analysis (BTCUSDT): 4-Hour Chart
As Bitcoin prepares to catch traders and investors unaware, it is important to consider some potential levels to watch in the coming days in case of a price explosion.
If it breaks through the $17200 resistance to the $17424 level, the closest resistance level here lies at $17632. There’s also resistance at $18186 and $18750.
However, a drop below the $16800 level could cause the price to revisit $16000 in no time. The $15500 level remains a crucial support for the market. If the price dip beneath this level, BTC may find new support around $14k.
Key Resistance Levels: $17,200, $17,632, $18,186
Key Support Levels: $16,800, $16,000, $15500
- Spot Price: $16,600
- Trend: Neutral – Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Follow us on Twitter @thevrsoldier to stay updated with the latest Metaverse, NFT, A.I., Cybersecurity, Supercomputer, and Cryptocurrency news!
Image Source: drnstudio/123RF // Image Effects by Colorcinch
