Bitcoin’s unrelenting trading range has offered investors few insights into its near-term trend
This range has persisted since the start of May, and isn’t showing no signs of letting up anytime soon
Overnight sellers did attempt to shatter the lower boundary of this trading range, although this was quickly reversed by ardent buyers who have since pushed it back to $9,400
It now appears that this consolidation trend could extend even further
The resolution to this sideways trading, however, is expected to be massive
Bitcoin’s consolidation phase almost came to a harsh end overnight when sellers pushed the crypto down towards its support within the lower-$9,000 region.
The defense of this level has since led it right back up to where it was trading at prior to this movement taking place, with this volatility doing little to offer insight into the crypto’s near-term trend.
Analysts are noting, much to the chagrin of traders, that this consolidation could last for many more weeks.
That being said, traders also believe that the resolution of this trading range will lead to explosive volatility, potentially kicking off a long-term trend.
Bitcoin Forms Incredibly Tight Trading Range as Analysts Eye an Explosive Movement
Bitcoin has been consolidating for nearly two months now, being unable to garner any decisive momentum as it drifts within the mid-$9,000 region.
This consolidation phase first came about after the cryptocurrency faced a rejection at just over $10,000 in early May and was further solidified after posting countless other rejections within the lower-to-mid five figure price region.
At the time of writing, Bitcoin is now trading down marginally at its current price of $9,400.
Analysts do believe that this consolidation essentially marks Bitcoin coiling up to make an explosive movement.
One analyst recently put forth a chart showing just how tight this range has become as of late.
“BTC is likely going to blow up anytime soon,” he explained while pointing to the chart seen below.
Image Courtesy of CryptoBirb. Chart via TradingView.
BTC Likely to Post Clear Trend Once Weeks of Consolidation Conclude
Another popular analyst spoke about this possibility in a recent tweet, also explaining that periods of prolonged consolidation historically always result in strong trends with clear directionality.
“One thing that you can count on if you are not sure of the direction for Bitcoin, After a period of compression i.e. realized volatility & ATM IV being relatively flatlined and stop fuel building at highs and lows, the move will have follow through. 2-week trend min IMHO,” he said.
Image Courtesy of Cantering Clark. Chart via TradingView.
As such, there is a strong likelihood that this next trend will be both large and sustainable.
Featured image from Shutterstock.
Charts from TradingView.