Investors Worry as Bitcoin Falls Into Consolidation Again

Bitcoin’s (BTC) volatility has begun to wane in recent hours, as the cryptocurrency has become wracked with extended periods of consolidation. 

Just last week, the benchmark cryptocurrency saw a significant rally, which sent its price from lows of $10,400 to $11,700 in a few days. Following the aggressive bullishness, BTC has fallen into consolidation once again. The absence of any directional bias has put investors in a state of uncertainty about what the near-term trend could be. 

That said, one of the results of the drawn-out consolidation in BTC is the 60-day volatility dropping to historical lows. Usually, this occurs when Bitcoin is on the brink of a significant spike, which means that its near-term price dynamics will dictate what comes of the cryptocurrency in the coming days and weeks. 

Key BTC Levels to Watch 

Last week, BTC ended a drawn-out consolidation phase within the mid-$10,000 area. However, the scales were tipped in favor of bulls, following reports of Square’s $50 million Bitcoin acquisition. The crypto has now balanced itself once again within the mid-$11,000 area, as bulls and bears battle for near-term dominance. 

For bulls to take control, they have to comfortably push the price above the strong resistance at $11,600. Subsequently, the $12,000 psychological line will come into view and will have to be decisively broken above for a bullish continuation. 

Meanwhile, BTC has broken below the crucial ascending trendline but was heavily supported by the $11,284 support level as expected. That said, we will likely see a bullish continuation in the near-term as long as BTC remains above $11,000. 

Total market capital: $358.6 billion

Bitcoin market capital: $210 billion

Bitcoin dominance: 58.6%.

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