Bitcoin Bulls And Bears Reach Standoff, BTC Consolidates Below $20K

Tony "The Bull" Severino

4 years ago

2 mins read

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Bitcoin volatility earlier in this week reached some of the most explosive price action in the asset’s history. In just a four hour window, the cryptocurrency rose and fell more than $1,000 each way, gyrating back and forth as buyers and sellers attempt equilibrium.

But after that powerful surge, indecision is showing through a reduction in volatility, and a tightening trading range. Bulls and bears are both in a standoff at this point, and either a drop is near, or $19,500 will finally give in as resistance. Here’s a look at how close the crypto asset is coming to a break in one direction or the other.

Bitcoin Price Action Pauses Under $20K, Bearish Or Bullish Consolidation?

Bitcoin price action has been more explosive than ever, resulting in the leading cryptocurrency by market cap setting a new all-time high price record.

But after setting the new high, FOMO didn’t push price past $20,000 resistance. What the crypto community calls “OG whales” who bought BTC in the early days are selling, offsetting the enormous momentum from new retail money and institutional traders.

It has led to an impasse or standoff like situation between bears and bulls over the last 24 hours.

The Bollinger Bands are contracting and gearing up for a big squeeze | Source: BTCUSD on TradingView.com

The chart above shows the declining volatility since the last large move, indicated by the Bollinger Bands contracting to a “squeeze.” As previous examples show, when the indicator coils, energy is released in either direction.

But which direction isn’t as clear. A low-timeframe symmetrical triangle could be forming, which doesn’t do much to help point to one path or another.

A symmetrical triangle could provide the climax to the consolidation below all-time high | Source: BTCUSD on TradingView.com

What is clear, is that a strong enough break above $19,475, or a fall below $18,875, could trigger the decision-making move.

For those considering trading this madness, beware of false breakouts in either direction and look for additional confirmations such as high volume.

It is worth noting that consolidation below resistance is often bullish, and a sign that the asset is ready to break through it.

Featured image from Deposit Photos, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

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In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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