Bitcoin is so far seeing a quiet weekend, with bulls taking control of its price action as they hold it above $18,000. This level was broken below earlier this week, but buyers were able to find enough support to thwart any intense selloff from here.
Although the crypto is holding strong above this level, it is important to note that the entire market is still on shaky ground and may remain in a precarious position until BTC can break firmly above $19,000.
This has long been a pivotal level for the cryptocurrency, with breaks below it typically opening the gates for serious selloffs.
If bulls can reclaim this level anytime soon, it could mean that another explosive rally to the crypto’s all-time highs is imminent.
There is one technical indicator that seems to suggest some explosive volatility is imminent in the near-term.
Whether or not this volatility favors bulls or bears should depend largely on the cryptocurrency’s reaction to $19,000, as a test of this level should provide some serious insights into where BTC and the rest of the crypto market will trend next.
Any rejection at, or just below, this level could lead the entire market to see some serious downside.
Bitcoin Struggles to Gain Momentum But Reclaims $18,000
At the time of writing, Bitcoin is trading up just under 3% at its current price of $18,500. This marks a notable climb from its recent lows of $17,600 set just a couple of days ago.
The selling pressure in the upper-$18,000 region has been significant, and whether or not it can break above $19,000 should have some serious implications for the cryptocurrency’s outlook in the weeks ahead.
Indicator Shows BTC is Gearing Up to See Some Massive Volatility
Bitcoin may be gearing up to see some massive volatility in the near-term, with one indicator showing that the crypto is poised to make a big movement in the days ahead.
One analyst spoke about this in a recent tweet, explaining that BTC’s cloud formation suggests that a macro trend-defining movement is fast approaching.
“The cloud doing its thing. Currently squeezing and thus tightening the range, whatever direction it will take – it will be big,” he said while pointing to the below chart.
Image Courtesy of Teddy. Source: BTCUSD on TradingView.
The coming week should shine a light on the cryptocurrency’s outlook, and its reaction to any test of $19,000 might be the event that sparks the next round of immense Bitcoin volatility.
Featured image from Unsplash. Charts from TradingView.