For more than two weeks, the world’s largest Cryptocurrency has been forced into a very fixed range, and this has led to so many things. One evident thing that the narrow squeezing has led to is a dangerous volatility that has never been witnessed in the past eight months.
Which Way Now For Bitcoin?
As a result of all these that have been going on in the market, Bitcoin is expected to make a very potent move, although the vector it is expected to take is not all clear. Following a directive that was issued on the 24th of May 2018, the virtual coins have been restricted to just a range of $7,000 to about $7,800. This, from all scopes, is very tight although the price has recorded a growth in the past 36 hours.
The increase in price that has been witnessed some hours ago is a clear indication of a market that is indecisive in all its natures.
Bitcoin’s Latest Activities
On Thursday, both the daily price low and the daily price high of Bitcoin dropped to $107.63. This was the daily volatility based on the spread between the daily price low and the daily price high.
As a matter of fact, this is the lowest the price has ever gone since the 2nd of October 2017. It has also dropped with 86% from $793, the average it reportedly accumulated in 2018. By the time this article was done, the Bitcoin Price Index was sitting at $7,580, which translates to $100 decline for the past 24 hours.
The Daily Volatility of Bitcoin
While the fuzz that was in the market earlier appears to have calmed, it is not expected to remain the same for a long time.
This is caused by a continuous sideways movement that is usually followed by a forceful move in both ways. Just as it is stated in one of the most known technical theories, the longer the period and the wider the range of consolidation, the more violent a particular breakout would usually be. This is what might be seen in the next few hours. Sooner than expected, Bitcoin might experience a fast move of $800, in both of the two directions.
At the beginning of the week, the world’s largest virtual coin, in terms of “Market cap” had appeared all set up for a serious bullish move. This came following an upside break of the channel that had just been disconnected.
Now the bull has not been able to cross-resistance at $7,780 and this has left more avenues open for bears that might want to make a comeback.
One thing that might happen anytime is Bitcoin closing up the session with downside break. The prices have actually begun to drop, and this indicates certain things.
Other Things to Expect
When it comes to Bitcoin, there are so many unexpected things that might just happen. A move going past $7,819 is the first thing that is expected.
This will indicate a bullish breakout and would set the tone for a rally to flag a resistance that is at $8,880.
On the other lower side, a break that is under $7,090 would indicate a bearish breakdown. When this happen, Bitcoin might come down to a price that is under $6,000, it’s low in February 2018.