Bitcoin has been facing an influx of massive volatility over the past 24-hours, surging to fresh monthly highs before bulls lost their strength and the crypto retraced by nearly $1,500.
This meteoric volatility has led to the formation of a wide weekly trading range, but analysts do believe that there is a strong possibility that BTC breaks above its upper range boundary and reaches fresh multi-month highs around $12,000.
Bitcoin Surges to $10,500 Before Facing Swift Rejection
At the time of writing, Bitcoin is trading up roughly 7% at its current price of $9,100, which marks a significant retrace from its daily highs of nearly $10,500 that were set at the peak of the rally that occurred late last night.
After briefly touching this price level, BTC’s bulls lost their strength and the crypto retraced to its current price levels, which may point to an underlying weakness behind the bulls who perpetuated this latest price rally.
Moon Overlord, a popular cryptocurrency analyst on Twitter, spoke about the massive price range that BTC is currently trading within on a weekly period, which may point to the possibility that that the crypto will be caught within this trading range for the next few weeks.
“New weekly $BTC range(s)? this should be fun,” he said while pointing to the range seen below, which spans between $7,300 and $10,600.
It is also important to note that BTC may also be caught within a large flag pennant, which may point to the possibility that it will either visit the upper or lower boundary of this flag, which could mean that another big movement is imminent.
“$BTC: If we break this falling wedge, we very well may cover $11.8k gap and possibly high as $12.3k. If we fail, one more touch to $6.9k region (cover 7185 gap) and then moon! This 3 day candle closes on week close,” The Cryptomist, another popular cryptocurrency analyst on Twitter, explained while referencing the chart seen below.