- Bitcoin saw some intense early-morning volatility today when its price rallied to highs of $9,350 before facing a swift rejection
- This caused it to subsequently reel beneath its $9,200 support, but buyers are now attempting to defend against further downside
- This volatility comes as the cryptocurrency’s weekly candle close fast approaches
- One analyst is now noting that this $300 movement may simply be the prelude to a much larger one
- He explained that historical data suggests that the crypto will soon make a 30% movement in one direction or another
- This means BTC may rally or dive by nearly $3,000.
Bitcoin bulls stepped up to the plate and attempted to propel the cryptocurrency up towards $9,400 earlier this morning.
They were met with significant selling pressure at this level that caused its price to dive lower.
It now appears that BTC is in a precarious position, as bulls are struggling to defend the crypto’s support at $9,200, while sellers appear to be targeting its range-lows at $9,000.
One analyst is noting that this slight volatility is likely to be followed by a much larger movement in the weeks and months ahead.
He explains that historical data suggests this move will send Bitcoin surging or reeling by 30% or more. This means BTC could soon be trading at $6,500 or $12,200.
Bitcoin Posts “Darth Maul” Candle Following Rejection at $9,350
Earlier this morning, Bitcoin’s price began rallying, once again breaking out of the trading range that has been established between $9,000 and $9,300.
The move past this range’s upper boundary was fleeting, however, as sellers rapidly slowed BTC’s ascent and caused the cryptocurrency’s price to reel down towards $9,100.
Buyers are now ardently trying to hold BTC around $9,200, as this has been a critical support level throughout the past several days.
This volatility formed what is jovially described by traders as a “Darth Maul” candle, named after the red double-sided saber of a fictional Star Wars character.
Bitcoin’s current outlook following this movement remains just as unclear as it was before the volatility took place.
Data Shows BTC is Poised to See Massive Volatility in the Near-Term
This unrelenting consolidation within the lower-$9,000 region may not last for too much longer.
Josh Rager – a well-respected cryptocurrency analyst and trader – explained in a recent tweet that bouts of volatility as low as the one Bitcoin is currently seeing are typically followed by movements ranging in size from 30% to 60%.
Assuming that a 30% movement is more likely, he notes that this means BTC could soon be trading at either $12,200 or $6,500.
“Bitcoin historical volatility (HV) nearing 40. BTC volatility this low has historically led to major price action between 30% to 60% movement in the following weeks. From current price: 30% move to the upside is $12,200. 30% move to the downside is $6,500. Put your seatbelt on.”
Image Courtesy of Josh Rager. Chart via TradingView.
How Bitcoin eventually responds to the upper and lower boundaries of its trading range could offer insight into which direction it will ultimately trend.
Featured image from Shutterstock. Charts from TradingView.
