Ever since Bitcoin (BTC) dropped below its previous support level of $3,550 last week, the cryptocurrency has been experiencing a bout of sideways trading at its current price levels. Bitcoin\u2019s recent price action seems to confirm $3,500 as a new level of resistance, but it has also established $3,400 as a level of support that has held over the past couple of weeks.<\/p>\n
Although Bitcoin<\/a> has been trading flat recently, multiple analysts expect it to see a large price swing in the near future, as the charts show that BTC\u2019s volatility is nearing a fresh demand zone, which is typically proceeded by a large price move.<\/p>\n At the time of writing, Bitcoin<\/a> is trading up marginally at its current price of $3,460. Over the past seven days, Bitcoin has been trading choppily between approximately $3,400 and $3,500 and has been narrowing this range over the past couple of days.<\/p>\n This isn\u2019t the first time Bitcoin has seen an extended period of sideways trading. Last-September Bitcoin saw a similar trading situation within the $6,000 region, trading choppily in a slightly larger trading range between $6,300 and $6,700.<\/p>\n While looking at the Bitcoin Historical Volatility Index, Hsaka, a popular cryptocurrency trader on Twitter, noted that the cryptocurrency\u2019s volatility has dropped to a new demand zone, which is typically proceeded by a large price move.<\/p>\n \u201c$BTC volatility testing a fresh demand zone\u2026. B I G\u00a0\u00a0M O V E\u00a0 \u00a0I N C O M I N G,\u201d he said.<\/p><\/blockquote>\n $BTC<\/a> volatility testing a fresh demand zone.<\/p>\n B I G M O V E I N C O M I N G. pic.twitter.com\/u1YqmSy42k<\/a><\/p>\n — Hsaka (@HsakaTrades) February 5, 2019<\/a><\/p><\/blockquote>\nBitcoin (BTC) Volatility Plunges, Likely to Increase Significantly in Near Future<\/strong>\u00a0<\/strong><\/h2>\n
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