Bitcoin (BTC) price is still below the $11,000 resistance but given the important events of the week such as Trump contracting the coronavirus, things could have been so much worse.
The cryptocurrency leader by market cap held its ground as KuCoin revealed more than $150 million worth of assets had been stolen, and the price only stumbled slightly as the CTFC announced that legal action was being taken against BitMEX exchange.
The price again avoided drop when DOW and S&P 500 futures took a hefty drop upon the announcement that U.S. President Donald Trump had contracted the coronavirus.
In the past, just one of these events like coronavirus would have easily tanked Bitcoin price by at least 10% and as history shows, altcoins would have been crushed even worse.
As Cointelegraph reported, Bitcoin’s resilience to major negative news events suggests that professional and retail investors remain bullish on the digital asset and the bullish uptrend to $12,000 could resume sooner than investors expect.
As has been seen, Bitcoin is compressing within a symmetrical triangle and the price is holding above $10,500.
The volume profile visible range (VPVR) on the daily chart indicates a large $1,450 gap which is the length of the Sept. 3 candle where Bitcoin fell from $11,400 to $9,950 and since this 13% correction the price has been pinned in this range.
At the time of writing, the relative strength index is slightly above 45 and the moving average convergence divergence shows the MACD on the verge of rolling over the signal line as sell volume increases.
This is not overwhelmingly worrisome and we can see the price is still making higher lows and lower highs as the price compresses. Although users’ sentiment may be bullish, the key ingredient missing at the moment is volume.
Bitcoin’s current range reminds us of May 25-July 20 that the price compressed within a similar symmetrical triangle before breaking out with a strong 36% rally that took the price to the 2020 high at $12,480.
Crypto users are likely watching the current structure to see if a similar scenario is going to happen. Holding above $10,380 will keep the price in the symmetrical triangle but below this level there has been demonstrated interest from buyers in the $10,200-$9,800 range.
In the event of a bullish breakout, Bitcoin price still requires to take out multiple resistance levels at $11,000 all the way through $11,400, hence the need for a high volume spike to obliterate all the overhead resistance.
Actually, the surprising news about Bitcoin is its lack of downside during an eventful week filled with events which would have clobbered the price in years past. But if we look at its actions, it did not do anything newsworthy over the past week.