Over the past few weeks, Bitcoin (BTC) has finally started to slow, establishing $7,000 as support and $7,800 as heavy resistance; the cryptocurrency hasn’t broken above or below those boundaries for over 10 days.<\/p>\n
Analysts say that this tightening price action is much like a spring coiling, implying that Bitcoin<\/a> will soon see a large price movement that may determine this market’s directionality for the next few weeks, maybe months.<\/p>\n But that begs the question, in which direction are analysts expecting crypto assets to move in the near future? And why?<\/p>\n Popular trader Big Chonis recently noted<\/a> that Bitcoin’s Bollinger Bands on the one-day chart are starting to consolidate, tightening as prices have stagnated in the low-$7,000s range.<\/p>\n Brief aside: Bollinger Bands are a technical analysis tool “defined by a set of lines plotted two standard deviations (positively and negatively) away from a simple moving average,” as Investopedia explains<\/a>. These bands measure market volatility.<\/p>\n $BTC<\/a> – daily BB getting very tight again …#bitcoin<\/a> setting up for a much bigger move… pic.twitter.com\/o6qcITEACL<\/a><\/p>\n — BIG Chonis (@BigChonis) December 10, 2019<\/a><\/p><\/blockquote>\nRelated Reading: Crypto Market is 0.25% of Global Stock Market: Can Bitcoin Catch Up?<\/a><\/h6>\n
Crypto Market Coiling for Breakout<\/h2>\n
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