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Bitcoin has been facing a bout of sideways trading for the past several days, but today’s drop to below $10,200 may spell trouble for the cryptocurrency’s near-term price action and may point to the possibility that BTC will soon revisit its nearest level of major support at $10,000.
This latest drop, although relatively minor, has been driven by a massive influx of volume, which could mean that a massive movement is inbound in the coming hours and days.
Bitcoin Slowly Moves Back Towards $10,000 as Sellers Flex Their Strength
At the time of writing, Bitcoin is trading down just over 1% at its current price of $10,215, which marks a slight retrace from its recent highs of nearly $10,500.
Importantly, Bitcoin failed to reach its region of major resistance at $10,800 ever since it bounced at $10,000 a couple of weeks ago, and the fact that BTC’s bulls were unable to push it to its near-term resistance region signals an underlying weakness that may spell trouble for its price action in the coming days.
Over the past several months Bitcoin has been trading between roughly $9,000 and its June-highs of $13,800, and its trading range has been narrowing significantly over the past several months.
This narrowing trading range may signal that a big movement – in one direction or another – is imminent.
Chonis, a popular crypto analyst on Twitter, mused this possibility in a recent tweet, explaining that he believes Bitcoin’s will make “a notable statement this week” while pointing to a chart that shows BTC’s incredibly narrow trading range.
$BTC – I think #bitcoin makes a notable statement this week… pic.twitter.com/4U5rNsc0rE
— BIG Chonis (@BigChonis) September 16, 2019
BTC Incurring Massive Volatility
The cryptocurrency may already be showing some signs of there soon being a massive movement, as its latest drop has been driven by a massive influx of volume.
Chonis further spoke about this volume in a recent tweet, explaining that Bitcoin’s latest candle on its 6-hour chart has the highest volume the crypto has seen in the past week.
“$BTC – triangle breakdown on the 6hr chart…what’s notable is the higher volume in this dump with still more than half the time left in this current candle, this should be the highest 6hr candle volume for #bitcoin in over a week when it closes,” he noted.
$BTC – triangle breakdown on the 6hr chart…what’s notable is the higher volume in this dump with still more than half the time left in this current candle, this should be the highest 6hr candle volume for #bitcoin in over a week when it closes… pic.twitter.com/WhpWAc6iOr
— BIG Chonis (@BigChonis) September 16, 2019
The coming hours may prove to be illuminating for Bitcoin, as its trading volume points to the fact that bulls and bears are currently locked in a battle, and which side prevails in the coming days could set the tone for how BTC trends in the coming weeks and months.
Featured image from Shutterstock.
