Bitcoin Caught in Consolidation Phase as Big Movement Nears
After finding some levels of support around $10,000 yesterday, Bitcoin’s bulls were unable to support its price above this level and BTC has now once again dropped into the upper-$9,000 region.
Analysts are currently noting that it appears Bitcoin is currently caught within a consolidation phase, but it is highly improbable that this phase will extend much further, as another major movement is likely imminent.
Bitcoin Breaks Below $10,000
At the time of writing, Bitcoin is trading down just over 1% at its current price of $9,900, which marks a slight retrace from its daily highs of nearly $10,100.
Bitcoin’s dip below $10,000 comes as the crypto community reacts to a somewhat disappointing Bakkt launch, as the physically settled Bitcoin futures platform has not yet garnered any noteworthy utilization from large investors.
The platform is still quite early into its launch and analysts are noting that it is still a very important development for the crypto markets, but it remains unclear as to whether or not Bakkt will actually catalyze any significant movement within the markets in the near-future.
Jacob Canfield, a popular crypto analyst on Twitter, spoke to his over 30k followers on Twitter about BTC’s current technical strength, explaining that it is gearing up for a big movement.
“#Bitcoin / $BTC / #BTC – Below most key MA’s on the daily time frame – Declining volume and volatility usually means a big move is coming – RSI wedge on support – Funding close to resetting with longs paying shorts the last month – Supports if we break down at $9500, $8800, $7000,” he explained in a recent tweet.
#Bitcoin / $BTC / #BTC– Below most key MA's on the daily time frame– Declining volume and volatility usually means a big move is coming– RSI wedge on support– Funding close to resetting with longs paying shorts the last month– Supports if we break down at $9500, $8800, $7000 pic.twitter.com/MkItBFt3SQ
— Jacob Canfield (@JacobCanfield) September 23, 2019
Will BTC’s Consolidation Phase Be Followed by Uptrend?
It is important to note that Bitcoin is currently caught in a consolidation phase, and Beetcoin, another popular crypto analyst on Twitter, explained in a recent tweet that he would not be surprised if BTC dips from here.
“#Bitcoin ($CRYPTO) Stages 2015 – 2019: September update. Still in the consolidation chopping traders left & right (you’ve been warned!). The RSI now looks exhausted. I won’t be surprise if it dips from there. Question: will it be a fake move down (quick recover) or worse?”
#Bitcoin ($CRYPTO) Stages 2015 – 2019: September update
Still in the consolidation chopping traders left & right (you've been warned!).
The RSI now looks exhausted. I won't be surprise if it dips from there.
Question: will it be a fake move down (quick recover) or worse? pic.twitter.com/fWO0r1kka9
— Beetcoin (@Beetcoin) September 23, 2019
The coming days and weeks will likely illuminate which direction Bitcoin will trend over the coming months, as a decisive downwards break from its current levels could generate technical damage that impacts its price for the rest of 2019.
Featured image from Shutterstock.
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