Bitcoin Likely to Tumble in the Near-Term as Volatility Fades

It has been a slow and choppy couple of weeks for Bitcoin (BTC). The cryptocurrency came tumbling down to the upper-$9,000 level after it recorded a fresh YTD high around $12,400 a few weeks ago.

Weirdly, this offers little or no insight into the near-term outlook of BTC, although it has shown just how strong bears currently are.

One analyst has noted that he is betting against Bitcoin, as he expects the cryptocurrency to reach the long-awaited $9,600 CME gap. He cites yesterday’s defeat from the $10,500 resistance as a sign of fresh weakness. However, he holds that a good break above the $10,500 line could reshape BTC’s short-term bias.

Meanwhile, the recent price action around Bitcoin has significantly influenced investors’ bias, as data indicates that overall market sentiment remains very scrambled with more traders leaning towards bearish for the near-term prospects of the cryptocurrency.

That said, a confluence of technical indicators and the bearish-leaning bias among investors could precipitate a sharp decline for the benchmark cryptocurrency.

Key BTC Levels to Watch

Bitcoin has traded in a consolidated range between $10,500 and $9,900 for more than seven consecutive sessions. The key level to break remains the $10,500 pivot area, followed by the $10,800, and the $11,000 psychological line.

On the flip side, bears need to break below the $9,900 support before they can take BTC to the $9,600 CME gap. A strong rebound is expected to happen if Bitcoin eventually falls to that level.

Total market capital: $334 billion

Bitcoin market capital: $190 billion

Bitcoin dominance: 56.8%

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