Bitcoin [BTC] price slid below $7500 after failing two bull attempts in 24 hours. The price exhibited a volatility of around 6% yesterday. The double-top pattern on Bitcoin [BTC] on the 1-hour chart reaches it first bearish target around $7300.
As the bearish trend remains intact, the charts also indicate that the sell-off from scams might have slowed down since December. Nevertheless, it has given rise to more uncertainty in the short-term direction.
Anatomy of the Trading Range
According to chart analyst, TraderXO, Bitcoin [BTC] might be building a classic accumulation pattern – the Wyckoff Accumulation. On a 12-hour chart, the chart seems to be playing this range out between $6500 and $7800.
The price is direction is currently uncertain as we go through the second phase of the move. Hence, the accumulation phase is still on. TraderXO tweeted,
Trend is down.. Market structure is still bearish.. Accumulation phase yet to play out
The next phase of the pattern will likely reveal the direction of the trade. Going with the trend, there is a higher probability of a bearish accumulation.
The Bollinger Bands on a daily scale also rejected the bulls from it’s upper resistance levels. The bands are forming a range between $6700 and $7600, which would be important levels for break-out. The bands are squeezing in to build another break-out in price.
The resistance level at monthly opening around $7800 is critical for the bulls as well.
BTC/USD 1-Day chart on Bitstamp (TradingView)
The traders on Okex and BitMEX seem to hold a neutral position at the moment with a faint bullish inclination. The funding rate of these exchange is slightly positive. The volume and open interest on futures exchange increased as the price exhibited high volatility.
The price of Bitcoin [BTC] at 2: 45 hours UTC on 24th December is $7311.
How long do you think the accumulation will go on for? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com