Bitcoin’s bears have had an edge over its bulls ever since it dipped below $10,000, as bulls have been unable to spark any sustainable rally in the time since this drop occurred, although they have been able to hold it above its key near-term support level of $7,800.
Analysts are now noting that Bitcoin is likely to incur some major volatility in the near-term, and one analyst believes that BTC will soon clock a rapid drop or surge as large as 10%.
Bitcoin Stabilizes in Lower $8,000 Region, But Large Movement is Imminent
At the time of writing, Bitcoin is trading down just over 1% at its current price of $8,350, which marks a notable drop from its recent highs of nearly $9,000 that were set during the fleeting rally that occurred earlier this week.
In the near-term it is critical that BTC’s bulls support its price above the lower-$8,000 region, as it remains unclear as to how strong its established support level at $7,800 will hold if it is visited again.
Big Cheds, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes Bitcoin is nearing a period of immense volatility, which may be confirmed while looking towards its recent raindrop candle formation.
“$BTC #Bitcoin – Yesterday’s purple raindrop candle further reinforces the idea that volatility is around the corner,” he explained while pointing to the below chart.
$BTC#Bitcoin – Yesterday's purple raindrop candle further reinforces the idea that volatility is around the corner
It remains unclear as to where this volatility will lead Bitcoin’s price, but it is important to note that bears have had an edge over bulls for the past several weeks.
Nick Cote, another popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes the next BTC movement will be at least 9%, which could mean that either bears will push it as low as $7,450, or bulls will push it as high as $9,300.
“Easy set up forming on #bitcoin. Daily inside bar pattern. Upside= $9,000 – $9,300 (Throwback level). Downside= $7,450 – $7,700 (Weekly support block). A good 9% move on each side of the break. The previous two inside bar setups I shared yielded 25% and 5% spot price movements,” he explained while pointing to the below chart.
Whether or not bulls or bears prevail in the current battle will likely grow clear in the near-future, as the next major movement could determine which direction the markets trend for the coming few months.