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Coming off of a relatively volatile week, the cryptocurrency markets are currently seeing a bout of sideways trading, with Bitcoin steady in the $3,650 region and most altcoins trading sideways. It is important to note that Bitcoin is still respecting the $3,500 region as a level of support, but its lack of buying pressure signals that this level may be gradually weakened over the coming days and weeks.
Analysts are now claiming that Bitcoin will likely see increased volatility in the next day or two, as historically Bitcoin makes large price moves after every two-day period of sideways trading.
Analyst: Bitcoin Likely to See Large Price Move in Coming Days
At the time of writing, Bitcoin is trading down marginally at its current price of $3,645. Bitcoin has seen some increased volatility over the past week, dropping to lows of $3,550 last weekend before surging to highs of $3,730 on Monday. Since then, Bitcoin has traded mostly sideways and has been drifting slightly downwards.
Josh Rager, a popular cryptocurrency analyst on Twitter, noted that BTC typically makes a move of at least $200 after every sideways trading period that lasts for two days. This means that Bitcoin is posed for a $200+ move in the next day or two.
“$BTC Daily Chart… After two low volume days of consolidation (see circled in the chart) Bitcoin has shown to have at least $200+ price action within the following day… We’ll see if Friday/Saturday holds true and allows for more volatility,” Rager explained.
It is important to note that analysts believe that BTC is caught in a trading range between $3,550 and $4,200. If the cryptocurrency happens to drop $200 or more, it will break below its support region around $3,500, which will open the doors for further losses. If its price jumps $200, it will still be caught in the aforementioned trading range.
Crypto Markets Trade Flat
Bitcoin’s sideways trading session has led the overall crypto markets to trade sideways.
At the time of writing, Ethereum is trading down just over 1% at its current price of $122. Ethereum has seen some volatility this week resulting from the recent Constantinople hard fork delay, which caused its price to instantly drop. It has since recovered slightly from this drop.
Don Alt, a popular cryptocurrency analyst, recently noted that he is staying away from trading Ethereum until it forms a more predictable trend, in one direction or another.
“$ETH update: The bullish setup that Cred and I discussed on Stream played out & hit my target perfectly. Was intended to be a weekly setup but played out to completion in one day. I’m now waiting for either $107 or $140 to hit before I’ll touch it again,” he explained.
XRP is currently trading down less than 1% at its current price of $0.328 and is up slightly from its weekly lows of $0.317.
Featured image from Shutterstock.
