Bitcoin Price Drop to $6,500 Still in the Picture; BTC Trading Volume Is Low
- Volatility Coming Soon
- The bottom should be in the first week of November
After a positive last week, Bitcoin opened Monday on a negative note. Still, the Bitcoin price is stuck around $8,300.
At the time of writing, the leading cryptocurrency has been trading at $8,269 with 24 hours loss of 1.54%, as per Coincodex.
Trading volume is still extremely low at just about $215 million, though it has risen from around $170 million registering during the weekend.
While after Bitcoin Cash (2.37%), BTC is leading the market with losses, XRP is enjoying the gains of 3.25% followed by Link, Stellar, and Tron. As such, BTC dominance is currently at 68.6%, staying below 70% for most of Oct. till now.
Volatility Coming Soon
Just before the weekend, the Bitcoin price surged above $8,800 level. Though we took a dive soon after we managed to remain around $8,450. For the first time in a month, the flagship cryptocurrency was above the 20-day MA.
Although price being above 20MA is bullish, crypto investor and trader Josh Rager says we could still drop because BTC is still in the middle of the range.
Moreover, the volume taking a hit during the weekends is also not good for Bitcoin either.
Bitcoin has been trading around $8,000 level since late Sept. and the trading range has been getting thinner and thinner ever since.
“With three weeks of sideways and the bbands starting to pinch, Bitcoin price could see some volatility soon,” said Rager.
The bottom should be in the first week of November
This volatility might see us pushing for new lows yet. According to trader TraderX0, Bitcoin can still eventually fall in $7,200 and $7,400 range.
But that’s not all. If BTC breaks $7,200, he says we can expect a “very deep” drop into the low 6,000’s as well.
Similar sentiments are shared by a popular technical analysis on TradingView by TradingShot, a professional financial analysis company that sees Bitcoin going to $6,500 in the near future.
The analysis points out the significance of MA1000 and MA1400 on the 1-day chart that formed a support zone during the last bear cycle with Bitcoin bouncing exactly on the 1D MA1400, followed by ranging below the 1D MA1000 only to consolidate that broke with the MA Ribbon turning green.
The Ribbon is currently in the red zone with no signs indicating that the trend is changing. The Channel Down is another factor, it states that it is within late June or early July channel that leads to “straight to the MA1000-MA1400 zone which is essentially the strongest MA Buy Zone.”
Since Nov./Dec. 2018 bottom, the RSI, the analysis states has been following a symmetrical curve formation. Now assuming that bottoms are following, “Higher Highs of the first half are symmetrical to the Lower Highs of the second,” the next RSI bottom should be in the first week of November testing at least $6,500.