Bitcoin investors have been growing impatient as the benchmark cryptocurrency continues hovering within the mid-$9,000 region. It has been consolidating here for many weeks, and each attempt to catalyze momentum – in either direction – has been futile.
BTC has seen trends like this in years past, and they nearly always resolve in the crypto making a massive movement that defines its trend over a long-term period.
As such, analysts do believe that the same possibility is in play here. One trader is even offering a chart showing that this sideways trading could come to a harsh end in the coming few days.
Assuming that this is the case, there are a few critical levels to watch, as which of these is broken first could offer insight into how it will trend in the weeks and months ahead.
Bitcoin’s Consolidation Phase Persists, But May Soon Come to a Violent End
At the time of writing, Bitcoin is trading down marginally at its current price of $9,400 – the level at which it has been trading at for the past few days.
BTC’s multi-week consolidation phase first began in early-May, after the cryptocurrency ran to highs of over $10,000 before facing a harsh rejection.
From this point, it began trading sideways and establishing a range between the upper $8,000 region and the lower-$10,000 region.
This same trading range still exists today, and the crypto has not been able to break firmly above or below either of these levels.
Bitcoin will remain without a trend until one of these levels is firmly broken.
There is a triangle pattern the crypto is currently caught within that seems to suggest that BTC will soon see a massive uptick in volatility.
This potentially imminent movement could offer a resolution to this trading range.
The chart seen below – offered by a popular crypto analyst – shows that Bitcoin is slated to reach the apex of the triangle in the next few days.
Image Courtesy of Kaleo. Chart via TradingView
Here are the Critical Levels That Will Determine BTC’s Fate
There are a few levels that could determine the fate of Bitcoin in the months ahead.
Josh Rager – a respected analyst and trader – spoke about some of the key near-term levels he is watching, noting that $9,250 and $9,550 are the two key levels that could spark some volatility.
“BTC: Lower time frames show compression of the price which should lead to volatility in the next 12 hours. Reclaiming $9550 is still the level to watch for a continuation to the upside. Break back down would lead to $9250 and likely lower. This is current range to watch,” he explained.
Image courtesy of Josh Rager. Chart via TradingView
Once one of these levels break, whether bears shatter its $8,500 support or bulls surmount its $10,500 resistance will set the tone for where it trends throughout the rest of 2020.
Featured image from Shutterstock. Charts from TradingView.