Bitcoin price has been struggling for the past few days after slipping below key support at $ 11,500. Although Bitcoin has risen slightly again and the asset is not in a mid- or long-term downtrend, if we lose the following two technical levels, they will officially enter one of these two trends.
A crypto trader shared the chart below on Aug. 21. Along with the recent price action display, it shows key levels that BTC needs to hold in the future.
Levels to watch for if you want to avoid further declines are: $ 11,000-11,200 and $ 10,600. If these two major supports fail, it could signal a trend change in the medium and long term. Until now, the level of 11,000 USD has not been "attacked" in the past few weeks.
Another analyst pointed out $ 11,000 as a key level for Bitcoin to hold. This person believes that there is a "big support" in this area due to the consolidation of BTC in this area in early August.
However, even when $ 11,000 is broken, analysts are confident that the $ 10,500 level will hold. This is because $ 10,500 is the peak of three separate bullish momentum: one in October 2019, one in March 2020 and one in June this year.
Another trader shared this chart on August 21 showing Ichimoku Cloud's "Kijun" currently at $ 10,600.
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After the volatile weekends, Bitcoin is currently trading at $ 11,668 with not showing any significant fluctuations.
Bitcoin's current price action has confused many analysts. Because before that, they believe that the leading cryptocurrency is in a clear uptrend. Before the situation, a trader used fractal to predict the next move of the asset.
Fractals in technical analysis terminology, they are used when analysts recognize an asset's historical price action that is repeated over another time frame.
And according to popular trader Dave The Wave, fractal is now suggesting that Bitcoin could go sideways for the next four weeks or so in the $ 11,000 to $ 12,000 range, then break higher in a bull market.
Another analyst also noticed this divergence but argued that the sideways trend could end early (compared to the traders' one month term).
However, the volatility may come sooner than either of the Fractal interpretations.
From the macro situation, analysts are starting to see interesting movements in the stock and forex markets that could drive the crypto markets higher or turn lower.
And on the BTC scale, the analysts have noted that the volatility is reaching historic levels.
As Brave New Coin crypto analyst Josh Olszewicz previously shared that Bollinger bands are tightening. Bollinger Bands are a technical indicator used to represent market volatility and important technical prices / ranges.
Although the bands are not as tight as they were before Bitcoin took off in July, they are continuing to tighten.