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After incurring tremendous volatility throughout the latter part of October and the majority of November, Bitcoin appears to have now entered a period of consolidation as its bulls and bears send BTC between the upper and lower boundaries of a tight trading range.
This period of sideways trading may soon come to an end, however, as one analyst is now noting that Bitcoin is currently expressing multiple bearish signs that could spell trouble for its near-term price action.
Bitcoin Inches Higher as BTC Enters Consolidation Phase
At the time of writing, Bitcoin is trading up just under 1% at its current price of $7,350, which marks a slight decline from its daily highs of $7,400.
In the short-term, it appears that Bitcoin has established the $7,400 region as a level of relative resistance, whereas the mid-$7,200 region appears to be a level of support for the cryptocurrency.
This has led to a bout of sideways trading over the past few days, which marks a notable shift from the volatile trading that has been seen on a consistent basis over the past several weeks, starting with its major rally from lows of $7,300 to highs of $10,600 in late-October.
Following this rally, the volatility incurred by BTC mostly favored bears, as it has since retraced virtually all of the gains that were incurred during this price surge.
How Bitcoin responds to its current trading range may set the tone for how it trends throughout the final few weeks of 2019, which could subsequently impact how it kicks of 2020.
BTC Overwhelmingly Bearish from a Technical Perspective, Claims Analyst
Hsaka, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that most of Bitcoin’s technical formations point to the possibility that significantly further losses are imminent.
“$BTC Exhibit I: This was probably the cleanest one till now, lot of confluence. • OI dip on impulse • Asks moving down with price • Ran yesterdays high (7421) • Closed below weekly open (7400) • Consecutive S/R flips without any reclaim,” he noted while referencing the chart seen below.
$BTC Exhibit I
This was probably the cleanest one till now, lot of confluence.
• OI dip on impulse
• Asks moving down with price
• Ran yesterdays high (7421)
• Closed below weekly open (7400)
• Consecutive S/R flips without any reclaim pic.twitter.com/T1aiB20IIq— Hsaka (@HsakaTrades) December 3, 2019
Assuming that bulls fail to garner any notable momentum and break out of this range, the cryptocurrency may soon see significantly further losses that send it back down towards its recent lows of $6,500.
Featured image from Shutterstock.
