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After facing a period of sideways trading within the lower-$7,000 region for the first few days of December, Bitcoin (BTC) has incurred a massive increase in its volatility, which led it to surge all the way up to $7,800 before retracing back to $7,200, before once again surging.
This choppy volatility is a notable change from the pattern of BTC making big and decisive movement followed by bouts of consolidation that had become commonplace throughout November, but analysts are noting that multiple factors are now pointing to the possibility that further gains are imminent.
Bitcoin Settles Within Mid-$7,000 Region After Incurring Heightened Volatility
At the time of writing, Bitcoin is trading down marginally at its current price of $7,420, which marks a climb from its daily lows of $7,200 but a decline from its highs of $7,800 that were set at the peak of the recent rally that bulls failed to sustain.
This volatility has muddied the clarity that analysts previously had regarding what trend BTC was caught within, but analysts are now noting that the byproducts of this recent volatility may actually prove to be a positive thing for bulls.
The Cryptomist, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that she is closely watching a bullish wedge that BTC is caught within, with targets set around the $10,000 region.
“$BTC: I know we dropped yesterday… But for me nothing has changed. I am still bullish, and looking at targets mentioned in previous post,” she explained while pointing to the chart seen below.
I know we dropped yesterday ..
But for me nothing has changedI am still bullish, and looking at targets mentioned in previous post pic.twitter.com/8XJONzAE5u
— The Cryptomist (@TheCryptomist) December 5, 2019
Negative Funding Could Strengthen Bullish Case for BTC, Claims Analyst
Currently, on large margin trading platforms like BitMEX, the funding rate for margin fueled BTC positions is negative, which means that short positions pay out long positions.
Josh Rager, another prominent cryptocurrency analyst on Twitter, spoke about the funding rate flipping negative, telling his followers that he wouldn’t be surprised if Bitcoin pumps back up again, although he still remains flat when it comes to its near-term trend.
“$BTC price action over the past day – you can’t make this up. With funding flipping negative I wouldn’t be shocked if this pumped back up again. I’m flat for now, happy liquidation hunting whales,” he explained referencing the below chart.
$BTC price action over the past day – you can't make this up
With funding flipping negative I wouldn't be shocked if this pumped back up again
I'm flat for now, happy liquidation hunting whales pic.twitter.com/9HA0BrqW9I
— Josh Rager ? (@Josh_Rager) December 5, 2019
The coming few hours and days will hopefully offer better insight into whether bulls or bears are currently in control of the cryptocurrency’s price action, but it is possible that it will face further sideways trading before falling into a clean and clear trend.
Featured image from Shutterstock.
