As Bitcoin continues to trade sideways, Bitcoin price prediction shows that a further downward move, possibly to $9,100, is possible.
Bitcoin price closed Tuesday at $10,627 after news of President Donald Trump delaying negotiations on the second round of fiscal stimulus. While it meant reversing the gains from the last two days, Bitcoin has just returned to its sideways range, which was between the $10,500 and $10,900 levels it traversed in about two weeks.
Analyst Michael Van de Poppe said this range-bound behavior started after Bitcoin fell from $11,200. “As long as the price of Bitcoin stays below this resistance area, it’s unlikely to expect a strong upside move,” he wrote in a report on Cointelegraph.
Volatility is an important factor that traders observe for BTC price. In the past, every time Bitcoin’s volatility dropped to its lowest, a big move soon followed. Recently, Bitcoin’s 180-day volatility fell to its lowest of 0.028, which is very close to its two-year low. Van de Poppe said when volatility starts to drain away, volume will drop off, which will lead to an eventual highly volatile move.
Adding the volatility and the failure to overcome the resistance area, bitcoin price prediction by Van de Poppe says that a breakdown is possible. The most important support levels, he added, are the $9,500 to $9,800 and $8,800 to $9,100 regions.
If Bitcoin can overcome the resistance, which is at the $11,200-$11,400 levels, Van de Poppe said new highs are on the horizon.
The analyst continued that even if Bitcoin went back to the $9,000 level, the outlook will still be bullish as it’s still a “higher low” within a massive bull trend.
Nevertheless, the analyst pointed out that Bitcoin showed signs of defiance. Bitcoin did not react negatively despite a multitude of bearish news, including troubles of BitMEX and the US president testing positive for COVID-19. The altcoins were on a downward slope while Bitcoin just continued trading sideways.