Bybit launches BTC Brawl trading competition

After 3 weeks of stagnation, traders say Bitcoin poised to see big volatility

After 3 weeks of stagnation, traders say Bitcoin poised to see big volatility

Following three weeks of stagnation, technical analysts anticipate the bitcoin price to see large volatility in the short term as it looks to test important levels. Cryptocurrency trader Josh Rager said:

“With three weeks of sideways and the Bollinger Bands starting to pinch, Bitcoin price could see some volatility soon Good news is that the price is above the 20-day MA for the first time in a month.”

Although BTC seemed to be demonstrating signs of a breakout to the upside, it has failed to remain above a key resistance level at $8,450, which could indicate a further pullback to lower support levels.

Volume struggles to recover as bitcoin gears towards a bearish trend

In the last 24 hours, the bitcoin price increased from around $8,220 to $8,460 in an extended upside movement, hinting a strong breakout above $8,450, which has served as a crucial level of activity in the past several weeks.

Almost immediately after the bitcoin price slightly surpassed $8,450, it showed steep rejection to the downside, closing the daily candle in red.

On BitMEX, the most widely utilized margin trading platform for cryptocurrency traders, the daily volume of bitcoin was hovering above $10 billion from June to July on peak days.

In the past two months, the daily volume of BTC on BitMEX has generally declined to around $2 to $4 billion.

A declining volume could imply two things: it could mean that the demand for the asset is on the decline or the sell pressure on the market is low enough for it to be reversed in the short term.

As such, traders like DonAlt have emphasized that if the bitcoin price breaks above $9,500, a high resistance level, it could lead to a proper reversal for the dominant cryptocurrency.

Bitcoin price in decline
Bitcoin price in decline as momentum slips (source: DonAlt Twitter)

Cred, a cryptocurrency technical analyst, said:

“Spike and rejection at the top of the range (with a retest of the HTF level at $8740-50). As a result, price failed to find support at the flip of the level that was holding the range high intact ($8430s). Intraday bias to downside while price stays below $8430s-$8500.”

No impact from the equities market

Up until late September, strategists like Fundstrat’s Thomas Lee said that the trend of the bitcoin price is heading to the upside, citing strong fundamentals of bitcoin, adding that a strong rebound in the equities market could trigger a BTC rally. He said at the time:

“I think the next big catalyst is a decisive breakout in the equity markets. I think when equities break through all-time high, bitcoin becomes a risk-on asset.”

Following the agreement of a mini trade deal between the U.S. and China, the U.S. stock market has recovered with momentum, as the Dow Jones added over 300 points in a single session.

Bitcoin remains unaffected by the boost in the equities market, which suggests that the sell pressure on the market has intensified.

Bitcoin | BTC

Updated: Nov 7 at 2:51 am PDT

Bitcoin, currently ranked #1 by market cap, is up 29.92% over the past 24 hours. BTC has a market cap of $175.45B with a 24 hour volume of $43.83B.

Chart by CryptoCompare

Bitcoin is up 29.92% over the past 24 hours.

Posted In: , Price Watch

The above advertisement is an affiliate link. CryptoSlate will earn a small commission if you sign up.

Like what you see? Subscribe to CryptoSlate

Get our daily newsletter containing the top blockchain stories and crypto analysis straight to your inbox.

Sign up to stay informed
Joseph Young

Joseph Young

Crypto Analyst @ CryptoSlate

Joseph Young is a finance and tech journalist. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.

View author profile

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.