Analysts have expected Bitcoin to start experiencing increased volatility after its recent move of up to $ 7,500, which immediately followed a full decline. Despite these expectations, BTC has been stuck within the $ 7,200 region and is struggling to achieve momentum.
Analysts are now finding that the cryptocurrency is currently likely to be at a critical node that will determine the direction in which BTC will develop in the coming weeks and months.
Bitcoin caught in the ascending channel
At the time of writing, Bitcoin is trading at $ 7,217, an extension of the sideways trading he has seen in the past week.
Earlier this week, BTC experienced a rapid and decisive upswing, causing its price to rise to $ 7,500 on major trading platforms like BitMEX. However, he had to give up all profits because he was unable to maintain this dynamic.
The candle wick that resulted from this move signals that the region around the middle $ 7,000 region represents a strong level of resistance for the cryptocurrency, which is why many analysts expect further short-term losses for the cryptocurrency.
Popular cryptocurrency analyst Scott Melker wrote on Twitter and commented that BTC is “channel surfing”.
Analyst: BTC could be approaching a critical node
On the question of where this channel could lead the Bitcoin price, the popular analyst “HornHairs” notes that Bitcoin’s closing point could give a significant glimpse of the future in the coming hours, as it is currently in a “critical moment” located.
“$ BTC: critical node here. Let’s close over and I’m looking for longs, underneath and I think we’re moving south. At the moment it looks like a rejection … let’s see. “
The trading period next weekend could tell whether Bitcoin will be able to gain some momentum and end the year at a high level – or whether the continuing downward trend will continue into the new year.