Bitcoin has been experiencing some incredibly positive price action over the past few months, but what started out at consistent, steady gains quickly changed into massive volatility after BTC began moving parabolically, which ultimately resulted in the crypto losing its momentum and plummeting from its recent highs.
Now, it appears that Bitcoin has entered a period of consolidation, bouncing between the upper $10,000 region and the lower $12,000 region. Importantly, one analyst believes BTC’s current consolidation trend could result in a plummet to $8,200.
Bitcoin Holds Above Support, But Fails to Move Higher
At the time of writing, Bitcoin is trading up marginally at its current price of $11,950 and is up slightly from daily lows of $11,500.
Bitcoin’s volatility first began earlier this week when BTC’s upwards momentum turned parabolic, leading it from weekly lows of $10,500 to highs of $13,800.
Despite this, the upwards momentum didn’t last long, as the cryptocurrency quickly plummeted after hitting this level, erasing the majority of its parabolic gains when it subsequently dropped to lows of $10,600.
In the time since this price movement occurred, Bitcoin has found some stability between roughly $11,500 and $12,500, which appears to be a fresh trading range that may persist for the foreseeable future.
In the near-term, it is important that BTC closes above the bottom of this aforementioned trading range, or else a drop into the $9,000 region could be imminent.
Josh Rager, a popular crypto analyst on Twitter, spoke about this in a recent tweet, also explaining that a close above this level could lead the cryptocurrency back into the upper-$13,000 region.
“$BTC – watching for a weekly close above $11,510. Confluence at that level, if closed below then real opportunity for price to retest at $9532 (0.382 fib). Close above could lead to higher probability to retest local highs at $13800s,” Rager noted.
$BTC – watching for a weekly close above $11,510
Confluence at that level, if closed below then real opportunity for price to retest at $9532 (0.382 fib)
Close above could lead to higher probability to retest local highs at $13800s pic.twitter.com/5i9vZs2wRA
— Josh Rager
(@Josh_Rager) June 29, 2019
Analyst: Despite Uptrend, BTC May Target $8,200 Next
Although today’s daily close will likely determine which direction Bitcoin is heading next, recently established technical formations may point to the possibility that it will target $8,200 next.
Mitoshi Kaku, another popular crypto analyst on Twitter, spoke about this possibility in a recent tweet, noting that a break above $13,200 would invalidate this theory.
“I’d like to wait a little bit more to share this, as I’m testing new and more complex formulas right now and I need more confirmations/data. But, this is the scenario I have for the next move, as long as we don’t break AND close above 13.2K (Invalidation),” he explained while referencing the below chart.
I’d like to wait a little bit more to share this, as I’m testing new and more complex formulas right now and I need more confirmations/data. But, this is the scenario I have for the next move, as long as we don’t break AND close above 13.2K (Invalidation) $BTC #Gann pic.twitter.com/k7HkwCmYMA
— Mitoshi Kaku
(@CryptoSays) June 29, 2019
After an incredibly volatile week, it is unclear as to whether or not this volatility will carry over into the weekend, or if BTC will begin consolidating and face a bout of sideways trading for the next couple of days.
Featured image from Shutterstock.
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