Bitcoin has entered what appears to be yet another consolidation phase in the $ 9,000 region. The crypto is struggling to gain any momentum as both buyers and sellers are reaching deadlock after the recent downturn.
It now appears that the crypto may be preparing for a massive move in the coming days and weeks as it rapidly approaches two major moving averages that have historically led to immense periods of volatility.
If history repeats itself, BTC could see a prolonged period of jerky trading followed by an upward outbreak.
However, analysts remain cautious about the short-term price action as yesterday’s market structure was nearly broken today.
Bitcoin is struggling with Garner Momentum as it enters the new consolidation phase
At the time of writing, Bitcoin is trading at just over 2% at its current price of $ 9,210. This marks a slight rise in daily lows of $ 8,800, but down from recent highs of just under $ 10,000.
The continued downward trend of the cryptocurrency came about after a long consolidation period in the region averaging $ 9,000.
During this consolidation phase, Bitcoin buyers have made multiple attempts to push the crypto past $ 10,000, but each faced heavy sales pressures that subsequently lowered the price.
This price drop was caused by news of a Satoshi-era Bitcoin wallet that moved 50 BTC.
The wallet had been inactive for more than a decade previously, raising concerns that an early adopter could prepare to relieve some of their holdings.
However, it doesn’t appear to have been the case, but the technical damage caused by the news-induced sale seems to have changed the cryptocurrency’s market structure.
A popular cryptocurrency analyst on Twitter explained that yesterday’s daily close led the crypto to peak and break its market structure.
BTC: Swept highs and broke MS at daily termination in the context of HTF resistance. Looks rough, sold a spot, ”he noted, pointing to the graph below.
Analysts warn that turbulence is imminent
Another analyst recently explained that he believes Bitcoin will see some turbulence in the coming days and weeks before making a trend-setting move.
He explained that the cryptocurrency is fast approaching two major moving averages, and the visit to these levels is likely to trigger a big movement.
“Expect a bit of turbulence here… Approaching two strong resistances: – 89 ema (black) – 21 ema (green). Bias remains bullish as long as there is a larger trend in the cloud, ”he said, pointing to the pattern below.
The previous extended consolidation period seen earlier this month resulted in Bitcoin recording a notable uptick that took it past $ 10,000.
If Bitcoin remains above its cloud structure, the cryptocurrency could be well positioned to rise higher in the coming days and weeks.
Featured image from Shutterstock.