One technical indicator suggests that BTC will soon see a huge wave of volatility despite the bulls taking control of the price action as they hold the $18,000 level. This level was broken already in the past week but the buyers were able to find more support and avoid the strong selloff from here but let’s look into it some more in our Bitcoin news today.
The cryptocurrency is now holding strong above this level so it is quite important to note that the entire market is still on the rocky bottom and could remain in a precarious position until BTC is ready to break above $19,000. This level was long seen as the pivotal level for the crypto asset that breaks below the typical opening of the doors for serious selloffs. If the bulls are able to reclaim this level soon, it could mean that another rally for an all-time high is imminent.
There’s also one technical indicator that seems to suggest a huge splash of volatility is imminent in the near-term. whether or not this volatility will favor the bulls or the bears, depends on the reaction to the $19,000 level as a test that will provide us with some more insights into where BTC and the rest of the market will trend next. Any rejection here or below this level could lead the entire market to see more downsides.
At the time of writing, BTC is trading up under 3% with a current price of $18,500 which marks a notable climb from its recent lows at $17,600 set a few days ago. The selling pressure in the upper $18,000 region was significant so if the bulls are able to break past $19,000 we can see some serious implications for the outlook of the cryptocurrency in the weeks ahead. BTC could be gearing up for some more volatility in the near-term with one indicator that shows how BTC is poised to make huge movements in the days ahead. One analyst spoke about it in a recent tweet explaining that BTC’s cloud formation will suggest a macro-trend is approaching:
“The cloud doing its thing. Currently squeezing and thus tightening the range, whatever direction it will take – it will be big.”
The upcoming weeks could shine a light on the outlook of the cryptocurrency and the reaction to any test of the $19,000 level could be the needed effect that will start the new round of BTC volatility.
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