Boredom Reigns as Bitcoin Price Moves Sideways
The bitcoin price has been stuck in a sideways and downward movement for seven weeks, leading to boredom among investors. While this type of price action would be considered normal for a major stock on the S&P, crypto investors are used to the volatility that cryptocurrencies typically provide. However, bitcoin still has the potential for significant upward or downward movement.
Key Points:
- Bitcoin’s current chart pattern suggests a descending channel, which is a bullish formation.
- A bull flag pattern is also possible if the channel forms after a spike to the upside.
- There are three major support levels that bitcoin is converging towards: the 0.618 Fibonacci level, an upwards trendline from the beginning of the year, and the 200-day moving average.
- Volatility is expected to return as bitcoin approaches these support levels.
- Trading expectations may not align with the herd, so unexpected movements could occur.
Traders should be prepared for various scenarios and exercise caution. If bitcoin dips, it could present an opportunity to enter or buy more, but a comprehensive risk management process and expert advice should be followed.
Hot Take:
The bitcoin price has been stagnant for a while, leading to boredom among crypto investors. However, the current chart pattern and convergence towards major support levels suggest that volatility may be on the horizon. Traders should stay alert and be prepared for unexpected movements while following a comprehensive risk management process.
By
By
By
By
By
By