Bitcoin (BTC) has been trading within a tight range over the past couple of weeks. The digital currency, which surged over the $4k level earlier this year, has since been struggling to test that level again. Bitcoin (BTC) was trading between the $3,500 and $4k level. However, the digital currency recently declined below the $3,500 mark.
Ever since it declined below the $3,500 mark, which served as its major support level, the digital currency has been experiencing a bout of sideways trading. At the moment, the previous support level of the digital currency is now acting as a hurdle to the coin.
Nevertheless, the digital currency has established new support at the $3,400 level, and it has held that support level over the past few weeks. Although the value of Bitcoin (BTC) has been relatively low recently, a lot of analysts expect the digital currency to see a massive price surge in the near future. This is because the charts of Bitcoin (BTC) shows that its volatility is drawing close to a fresh demand zone, which is usually accompanied by a massive price surge.
Is Bitcoin (BTC) Gearing Up for a Massive Price Recovery?
Over the past couple of weeks, Bitcoin (BTC) has been trading between $3,400 and $3,500, and it has been narrowing this range over the past few days. This is not the first time the digital currency has seen an extended period of downwards trading. In September last year, the digital currency saw a similar trend within the $6k and $7k level, trading in a slightly larger trading range between the $6,300 and $6,700 levels.
While looking at the Historical Volatility Index of Bitcoin (BTC), a popular digital currency trader on Twitter – Hsaka – stated that the volatility of the digital currency has declined to a new demand region, which is typically accompanied by a large price move.
Bitcoin (BTC) might Plunge Further before It Surges Higher
The earlier mentioned price swing of Bitcoin (BTC) could be in either direction. Based on the fundamental weakness of the digital currency markets, some analysts believe that Bitcoin (BTC) would decline further before it gets enough buying pressure to reverse the present downward trend.
A popular digital currency analyst on Twitter – the Crypto Dog – recently said that he would not be surprised if the world’s most dominant digital currency plunge towards the $1,800 mark, which would, by default, cause the whole digital currencies in the market to follow suit.
Bitcoin (BTC) Price Today – BTC / USD
In a tweet, The Crypto Dog said: “$1,800 for Bitcoin (BTC) and $50 for Ethereum (ETH) would not surprise me. I don’t know for any certainty we will see those prices, nor do I mind if we reach them or not… If you are in Bitcoin (BTC) for the long haul, DCA. If you are learning to trade, just survive. Keep your risk low, gains will be easier someday.”
Although he does believe that the digital currency could decline to the $1,800 level, the digital currency analysts further added that he doesn’t believe a decline to $1,200 is a possibility.
Based on the possibility of a forthcoming surge in volatility, traders are going to be more careful watching which direction the digital currency moves, as it could determine whether or not the persisting bear market will begin to reverse or continue on.