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Thursday, December 8, 2022

Bitcoin price clings to $20K as Bollinger bands close in for volatility

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Bitcoin (BTC) mentioned “no” to volatility for a 3rd day on July 7 as Wall Street buying and selling started with little change in temper.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Next transfer “possible units course going ahead”

Data from Cointelegraph Markets Pro and TradingView adopted BTC/USD as it fluctuated simply north of $20,000, retaining a sample attribute of the week up to now.

The pair stayed effectively inside an outlined vary in a single day, main analysts to assume {that a} break up or down was subsequent as a short-term prospect.

“Bitcoin strong consolidation at $20k, this can’t go on forever, triangle primed to break to upside or downside. But RSI bullish divergence tho,” Venturefounder, a contributor to on-chain analytics platform CryptoQuant, told Twitter followers July 6.

“BTC going above $21,700 makes a higher high, going below $18,800 makes a lower low, the next move likely sets the direction forward.”

Bullish alerts on Bitcoin’s relative power index (RSI) referred to be Venturefounder typically precede BTC price followthrough, making the present RSI chart a key reference level on low timeframes.

Confirming the probability for volatility to return, in the meantime, Bollinger bands on the every day chart stayed slim — a traditional prelude to a development taking form.

BTC/USD 1-day candle chart (Bitstamp) with RSI, Bollinger bands. Source: TradingView

Regarding what course that development might take, all bets remained off on the day as warning summarized sentiment.

“Still not convinced with this type of price action,” crypto dealer Ninja commented.

“below $20.6k is distribution imo, and any pumps shall be faded… the nuke is not over.”

Ninja additionally noted that brief curiosity was constructing on alternate platform Bybit on the day, advising a hands-off strategy till these positions unwound.

Calm earlier than the CPI storm

On macro markets, the U.S. opened to modest beneficial properties, with the S&P 500 and Nasdaq Composite Index up 1% and 1.3% respectively throughout the first half-hour.

Related: Bitcoin bulls may have to wait until 2024 for next BTC price ‘rocket stage’

Per week earlier than May’s Consumer Price Index (CPI) information launch, markets remained freed from turbulence over inflation signals, in flip protecting extra headwinds from impacting crypto asset efficiency.

With opinions nonetheless blended over how U.S. financial coverage will change by 2023, dealer Crypto Tony acknowledged {that a} true return to type for Bitcoin and altcoins could take longer than many understand.

“Personally on my worse case scenario update i do not think we see the start of the next impulse until later next year and a new bull run peak until 2024 – 2025,” he tweeted on the day.

“I am already positioned at 22-24k and will add if we drop to 17 – 15k.”

Earlier, in the meantime, Cointelegraph reported on one dealer’s concept that Bitcoin will affirm the place the most recent macro backside is by July 15.