Bitcoin could see an extended bout of choppy trading followed by an upwards breakout
Bitcoin (BTC) price is up 2% for today’s session at $9,250 having reclaimed the $9,000 handle, after briefly losing it and finding lows of $8,800. Overall, the biggest cryptocurrency by market capitalization is down 1.8% from where it was at the same time on Thursday.
Ether (ETH), the second-biggest crypto, is holding the $200 handle, and at $204 representing a 2.69% recovery from yesterday’s lows of $191. XRP — the third-biggest by market cap — has regained the $0.20 level and is also up 3.8% for the day’s session.
The investors who have purchased for the long-term should not be disturbed with small price swings. However, traders, who aim to profit from the volatility in the crypto sector should be willing to book profits at stiff resistances and buy at strong supports. They should gradually aim to build their portfolio instead of waiting for a home run on every trade.
Bitcoin Struggles to Garner Momentum as It Enters Fresh Consolidation Phase
During this consolidation phase, Bitcoin’s buyers made multiple attempts to propel the crypto past $10,000, but each one was met with heavy selling pressure that subsequently led its price lower.
This price decline was triggered by news of a Satoshi-era Bitcoin wallet moving 50 BTC.
The wallet has previously been dormant for over a decade and sparked concerns that an early adopter could be gearing up to offload some of their holdings.
One popular cryptocurrency analyst on Twitter explained that yesterday’s daily close led the crypto to sweep its highs and break its market structure.
Swept highs and broke MS on the daily close in the context of HTF resistance.
Looks rough, sold some spot. pic.twitter.com/AOBomGcSNF
— HornHairs 🌊 (@CryptoHornHairs) May 22, 2020
Analysts Warn that Turbulence is Imminent
Another analyst recently explained that he believes Bitcoin is bound to see some “turbulence” in the days and weeks ahead before making a trend-defining movement.
He explained that the cryptocurrency is fast approaching two key moving averages, with its visit to these levels likely sparking a large move.
Expecting a bit of turbulence here
Approaching two strong resistances:
– 89 ema ( black )
– 21 ema ( green )
— Teddy (@TeddyCleps) May 22, 2020
If Bitcoin remains above its cloud structure, the cryptocurrency could be well-positioned to rally higher in the days and weeks ahead.
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