Yesterday, on October 10, the price of Bitcoin broke out of the $6.600 mark after stabilizing at the $6,550 level for a few weeks.
The volume of Bitcoin saw an increase of 12 percent from $3.2 billion to $3.6 billion on Coinmarketcap and $2.1 billion to $2.38 billion on ShapeShift’s CoinCap.io.
Some tokens including 0x and Polymath have recorded decent 5 to 10 percent gains in the past 24 hours but the inability of Bitcoin to demonstrate a promising recovery in its volume to its previous level at around $4.3 billion has prevented the rest of the market from initiating a major rally.
Technical Analysts Predict a Big Move
The majority of technical analysts and prominent traders in the cryptocurrency sector are anticipating a large move on either the upside or downside. Currently, due to the relatively low volume of the crypto exchange market, it is not certain that the next major movement of Bitcoin will be breakout of two resistance levels at $6,800 and $7,000.
Hence, in the days to come, it is possible that BTC experiences a substantial spike in its volume and breakout of the $6,800 level or sees another shakeout before initiating a meaningful short-term rally.
“The range that never ends. It’s getting tighter though and I suspect we’ll get a big move soon. Recent PA is stuck in the one big green candle. Be careful in both directions, I wouldn’t be surprised by big shakeouts before the real move,” Don Alt said.
But, as respected trader Crypto Dog explained, the probability of BTCinitiating a positive upside movement in the upcoming days is higher than the likelihood of the dominant cryptocurrency testing the $6,000 support level, given its stability and graudal increase in volume.
“BTC is nearing apex of this consolidation pattern, hopefully we see a break upwards in the next day or two. From my experience, the longer a consolidation pattern (the closer price ranges to apex), the more likely it is to break down rather than up.”
Previously, after major 60 to 80 percent corrections, Bitcoin has historically tended to initiate strong recovery following a few months of noticeable stability. In October 2013 for instance, BTC demonstrated a rate of volatility at around 4 percent before recording a three-fold surge in price by the end of the year.
Thus, it is entirely possible that the two-month stability period of BTC from August to October could allow the asset to test major resistance levels at $6,800, $7,000, and $8,000 in the weeks to come, as long as its volume can be sustained.
Rest of the Market
Ethereum, Ripple, Bitcoin Cash, and EOS have struggled to see any major movement in the past week, recording a minor drop in value in the past 24 hours. The volume of XRP, the native cryptocurrency of the Ripple blockchain network, has dropped from its $1.5 billion peak to $395 million within a period of two weeks, which is concerning for the short-term price trend of XRP.
Featured Image from Shutterstock. Charts from TradingView.
Last modified: March 4, 2021 3:47 PM