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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