With a neutrally closing weekly candle traders and analysts are expecting this week to be a little livelier for Bitcoin. The weekend saw a little action but gains could not be maintained as BTC and altcoins fell back into their channels.
No Progress Over $11k For Bitcoin
Late Saturday/early Sunday saw BTC rise back to tap $11,000 but it only remained there for a couple of hours before sliding back to an intraday low of just below $10,400. Daily volume has tailed off quite a bit over the weekend, however, and is now down to $16 billion as markets remain range bound.
BTC is back at the same price it was this time last month and analysts are expecting a little more volatility this week after some lengthy consolidation. The longer Bitcoin consolidates the bigger the next move usually is. This was observed by ‘Chonis Trading’ on crypto twitter earlier.
“The Longer #bitcoin takes to consolidate the Bigger the next move becomes … $BTC is the same price it was exactly a month ago… the next break should happen quicker and larger than the last…”
The Longer takes to consolidate the Bigger the next move becomes … is the same price it was exactly a month ago… the next break should happen quicker and larger than the last…
— BIG Chonis (@BigChonis)
Boomerang Capital Inc to the downside for Bitcoin following the rejection of $11,000 over the weekend.
“#BTC bulls attempted to push back this week. As of now have yet to produce anything serious. We expect price could drop lower after being rejected at the critical junction at 11k. Long term spot buyers, get your fiat ready for buys in the mid 8000s down to the mid 7000s.”
From a technical standpoint the Bollinger bands are starting to squeeze as trader and analyst Josh Rager pointed out after the close of the weekly candle.
“Weekly/daily close was neutral. Closed in the range between primary support/resistance levels. But volatility expected to happen this week, BBands starting to pinch on 4 hour. Hopefully we get some live action on the charts to start the week”
//twitter.com/Josh_Rager/status/67849729
Analysts are generally mixed as to the next direction. With the regulatory pressure off for now, and Bitcoin just having cycled a 33 percent correction from $13,800 to $9,200, some are expecting a move to the upside.
Last week’s congress hearings were generally considered as bullish for Bitcoin as their angst was largely focused on Facebook and its global domination plans. The CFTC investigation of BitMEX was bad news for them but BTC did not blip on the news.
Over the past seven days total crypto market capitalization has ranged between $260 and $290 billion. As we begin another trading week it is towards the top of that range with all eyes on Bitcoin for its next big move.
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