Bitcoin Ends September In an Unrelenting Directionless Bias

Updated:

Bitcoin (BTC) and the rest of the cryptocurrency market have been trading with intense choppiness for the past few days and weeks, with bulls and bears failing to forge a clear path in the near-term.

The benchmark cryptocurrency has been in a trading range between $10,200 and $11,000 for most of September. The prolonged absence of any volatility has caused the trading range to contract even further to $10,600 and $10,800 since last week.

Analysts are unsure of what could catalyze significant volatility for the cryptocurrency in the coming days and weeks.

Meanwhile, one analyst has cited a historical pattern as a possible bullish signal for BTC. He explains that the prevailing sideways movement in Bitcoin is taking place below a key resistance level. Usually, this is an indication that bulls are laying the foundation for an explosive move higher.

Bitcoin’s current consolidation has been occurring just below the $11,000 key resistance level. The analyst noted that Bitcoin’s past consolidation occurred above the $11,000 line, which caused the cryptocurrency to drop to the $9,900 level some weeks ago.

BTCUSD – 4-Hour Chart

Key BTC Levels to Watch In the Near-Term

The benchmark cryptocurrency has now spent most of this week consolidating between $10,600 and $10,800. As mentioned earlier, the consolidation range has been contracting over the weeks, mostly recording higher lows. This is a good sign that a bullish rally is just around the corner for the digital asset. If a bullish breakdown doesn’t occur soon, we could see a further contraction of the said consolidation range in the coming days.

Meanwhile, it appears that BTC has formed a strong demand zone at the 50 SMA line at $10,650.

Total market capital: $344 billion

Bitcoin market capital: $198 billion

Bitcoin dominance: 57.5%

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.