Bitcoin is currently in a consolidation process and is struggling to control its short-term prospects.
The medium-term performance of the crypto currency is likely to depend on whether the bulls can push it back above $19,000, as this was a key level for BTC.
A trader explains in a tweet that Bitcoin Bank consolidation channel is running out of space – which could mean massive volatility is imminent.
A sustained trading boom down here could open the gates for serious losses, but many factors are strongly in favor of the crypto currency.
One trader believes that BTC’s consolidation channel is about to lose its place, which could mean that a massive upward push is imminent.
For this to take effect, the crypto currency must continue to set higher lows.
Bitcoin has been caught in an intensive sideways trading in recent weeks.
This is due to the fact that the resistance in the region of the upper 19,000 US dollars is still quite strong, while the buying pressure in the region of the middle 18,000 US dollars remains strong.
Bitcoin’s consolidation phase has narrowed considerably recently, which could be a sign that a massive movement is imminent in the near future.
One trader believes that a massive movement is imminent in the near future as the crypto-currency channel is rapidly narrowing.
Bitcoin struggles to stay above $19,000 with increasing selling pressure
Bitcoin is currently quoted at a price of $18,000. Overnight, the crypto-currency dropped rapidly before it could find some support.
The fact that there is support is positive and could mean that an upswing is imminent in the near future.
However, the resistance at $19,000 is quite strong and turning this level into support has proven to be a difficult task.
Bitcoin’s consolidation channel goes „out of control
He notes that BTC will remain in this channel as long as he continues to see lower highs and higher lows. However, this trend can only last for a certain period of time.
„BTC will continue to refine this area of consolidation… lower highs, higher lows, at some point we will run out of space.
Which direction Bitcoin takes after this consolidation phase is over will probably set the tone for its future medium-term trend.