Multiple technical patterns are now hinting that some massive volatility is imminent. Bitcoin’s Bollinger Bands for one, is saying so. Bitcoin’s intense consolidation phase may soon come to a close.
This potential trend-defining movement is likely the aftermath of months of range-bound trading from $9,000 to $10,000.
The trading range has contracted to between $9,000 and $9,300 throughout the past few weeks. Moreover, both buyers and sellers are sitting deadlocked as both sides fail to attain control.
An analyst is now saying that he is anticipating Bitcoin to have one more accumulation cycle that would send its price reeling down toward the sub-$5,000 regions.
This price target coincides with the lower boundary of a huge pennant which was formed throughout the past three years.
Furthermore, the analyst thinks that this descent will decide the final re-accumulation phase seen by the benchmark cryptocurrency. Moreover, an intense uptrend may follow that will allow it to enter a strong bull territory.
Bitcoin’s Bollinger Bands Is Suggesting Massive Volatility Is Imminent
As of now, Bitcoin is trading up marginally at the current price, $9,170.
Throughout the past several days and weeks, Bitcoin has failed to collect any decisive momentum as its trading range continued to contract.
There was a sharp decline in both trading volume and liquidity seen by the digital asset throughout the past several weeks and months. As a result, it entered a consolidation phase.
On the other hand, this narrowing trading range may also be the result of traders growing increasingly centered on altcoins. As reported, altcoins have been seeing intense uptrends throughout the past few weeks.
It is not impossible that Bitcoin will stay caught in its current bout of sideways trading until the strength seen by many of these smaller tokens begins wavering.
However, an analyst observed that since October 2018, Bitcoin’s Bollinger Bands are now at their tightest levels. This depicts that Bitcoin is likely to stimulate a massive movement in the coming days and weeks.
Bitcoin Is Likely to See One Final Decline Before Bull Trend Kicks Off, says Analyst
A notable analyst said that he is anticipating seeing one final re-accumulation phase that would push it down to the lower boundary of its macro pennant.
This could further mean a movement towards $5,000 is imminent and that the next bull market will follow.
This cycle-low may kick off in the days and weeks ahead, due to Bitcoin’s historically tight Bollinger Bands.