Bitcoin Caught in Wide Long-Established Trading Range; Factors & Trends
Bitcoin (BTC) has incurred increased volatility as of late, which was first sparked when it briefly touched $9,400 before surging to highs of $10,800, which is the price at which it faced some levels of resistance.
Analysts are now noting that BTC is still trading within a long-established wide trading range, and that its mid-term trend remains unclear until it breaks through either the upper or lower boundaries of the aforementioned trading range.
Bitcoin Faces Rejection at $10,800 as Bears Fight Back
At the time of writing, Bitcoin is trading down nearly 2% at its current price of $10,450 and is still up significantly from its recent lows of roughly $9,400 but is down slightly from its recent highs of just under $10,800 that were set yesterday.
It is important to note that this recent price action has done little to clarify what type of trend Bitcoin is currently in, as the crypto has continued trading between a relatively wide trading-range that has been established for many weeks.
Alex Krüger, a popular crypto analyst on Twitter, spoke about this trading range in a recent tweet, explaining that although BTC is more bullish now than it has been in recent times, its bullishness is still tempered unless it can break above $10,800.
“This $BTC analysis is still valid. Two weeks later, price is at the same level after tossing bulls and bears around even further within the range. However, chart is now more bullish given last week’s new bears, now trapped. Key level above is 10,800. Expect next test to break,” he explained while referencing a previous tweet.
This $BTC analysis is still valid. Two weeks later, price is at the same level after tossing bulls and bears around even further within the range. However, chart is now more bullish given last week's new bears, now trapped. Key level above is 10,800. Expect next test to break. https://t.co/dzdD6k9cMF
— Alex Krüger (@krugermacro) September 4, 2019
BTC May Still Target $11,300 in Near-Term
Although BTC has yet to break above what Krüger deems as a critical price level, he also believes that it is currently primed for a movement up towards $11,300 in the near-term, despite the slight amount of selling pressure it incurred today.
“Targeting a 10,800 breakout, taking price to *at least* 11,300, is a good trade short-term to me, with invalidation around 9,800. Stops should be tightened to the 10,300-10,000 range after 10,300 stops taken out and level rejected, or once above 10,600, and to BE after 10,800,” he explained.
Bitcoin may soon establish a firm near-term trend as it begins incurring increasing volatility, and whether or not it is able to break above or below the key range levels will likely set the tone for how it trends throughout the second-half of 2019.
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