Bitcoin Ends September In an Unrelenting Directionless Bias

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.

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%

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