Analyst Claims Bitcoin Could Shortly See Increased Volatility as Crypto Markets Trade Sideways
Coming off of a relatively volatile week, the cryptocurrency markets are currently seeing a bout of sideways trading, with Bitcoin steady in the $3,650 region and most altcoins trading sideways. It is important to note that Bitcoin is still respecting the $3,500 region as a level of support, but its lack of buying pressure signals that this level may be gradually weakened over the coming days and weeks.
Analyst: Bitcoin Likely to See Large Price Move in Coming Days
At the time of writing, Bitcoin is trading down marginally at its current price of $3,645. Bitcoin has seen some increased volatility over the past week, dropping to lows of $3,550 last weekend before surging to highs of $3,730 on Monday. Since then, Bitcoin has traded mostly sideways and has been drifting slightly downwards.
Josh Rager, a popular cryptocurrency analyst on Twitter, noted that BTC typically makes a move of at least $200 after every sideways trading period that lasts for two days. This means that Bitcoin is posed for a $200+ move in the next day or two.
“$BTC Daily Chart… After two low volume days of consolidation (see circled in the chart) Bitcoin has shown to have at least $200+ price action within the following day… We’ll see if Friday/Saturday holds true and allows for more volatility,” Rager explained.
It is important to note that analysts believe that BTC is caught in a trading range between $3,550 and $4,200. If the cryptocurrency happens to drop $200 or more, it will break below its support region around $3,500, which will open the doors for further losses. If its price jumps $200, it will still be caught in the aforementioned trading range.
Crypto Markets Trade Flat
At the time of writing, Ethereum is trading down just over 1% at its current price of $122. Ethereum has seen some volatility this week resulting from the recent Constantinople hard fork delay, which caused its price to instantly drop. It has since recovered slightly from this drop.
“$ETH update: The bullish setup that Cred and I discussed on Stream played out & hit my target perfectly. Was intended to be a weekly setup but played out to completion in one day. I’m now waiting for either $107 or $140 to hit before I’ll touch it again,” he explained.
XRP is currently trading down less than 1% at its current price of $0.328 and is up slightly from its weekly lows of $0.317.
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