Over the last 24 hours, Bitcoin has increased by 5% and almost reached $40,000. But the trading volume did not rise following this movement and amounted to $23 billion. However, today the price rolled back to the previous values again and currently stands at $38,500. Altcoins, in line with Bitcoin, also showed a slight increase at first, but then went down.
Let’s take a look at the chart of the first cryptocurrency and try to figure out the direction it will take in the coming days:
In recent months, there have been no significant changes on the chart. Bitcoin is moving in a wide range of $36,000 – $45,000. During this time, bulls have made 3 attempts to overcome the resistance level, but eventually failed as each time active sellers stepped in here and did not allow the price to go higher.
In the last month, the Bitcoin volatility has dramatically decreased. This appears to be more obvious on the 4-hour chart, where you can see that the price has barely changed over the weekend. As a rule, at the end of the week volatility does not exceed 2%. This pattern has already become systematic, which indicates that the crypto market is almost empty. The chart has stopped forming certain structures. The price jumps up, then drops sharply down, but eventually returns to its original values. This is very similar to traps for both short and long traders.
In situations like these, the most optimal variant is to choose short-term strategies. Amidst the uncertainty and weak market activity, the price is under pressure exerted by sellers and gradually goes lower and lower. Therefore, we expect to see another fall of Bitcoin.
The nearest support level is $36,000 – $37,000. If Bitcoin breaks this level, then the chart will accelerate the fall as many stop-loss orders have been placed below this level. It will also lead to massive liquidations that will, in turn, trigger a rapid downward movement to the global support level of $28,800 – $31,400.
This scenario is the most likely now. Therefore, it is necessary to be extremely careful now. This also applies to the altcoin market, which, with such a development of events, will fall even more.