Bitcoin (BTC) showed no signs of breaking out on Oct. 20 as tantalizing sideways action continued.
Analyst: Bitcoin Range Is ‘Congested and Critical’
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair remained firmly in a range around $19,000 overnight, moving only around $400 up or down.
US stocks opened without significant volatility, this was more focused on the UK where the pound reacted to the news that Liz Truss had resigned as Prime Minister.
The data in the graphs circulated on social media at the time of writing showed that the volatility of GBP and BTC had become virtually identical, with the latter already in its lowest volatility period since 2020.
While macroeconomic factors have no impact, analysts note that strong support and resistance levels are keeping price action in check.
“Bitcoin continues to trade in a congested and critical range”, summarized Keith Alan, founder of Material Indicators, an analytical resource, today.
Alan highlighted two key moving averages (MAs) that are close to each other and act as resistance limits in the trading range.
“The 21-day MA is confluent with the trendline resistance from the all-time high and the 50-day MA is confluent with the resistance at the 2017 top,” he explained.
Exchange data hints at strength of breakdown
Following the investigation of the current trading range, Filbfilb, co-founder of the Decentrader trading suite, had some bleak news for the bulls.
Analysis of settlement data on major exchange Bitfinex concluded that a breakout to the upside of the range “would not have the momentum that a breakout to the downside would.”
So, the danger of a serious loss of support remained a firm possibility based on trader activity.
Alongside a sell-off chart, Filbfilb summed up that “a break above the range will probably be less brutal than a break below.”
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Each investment and commercial movement involves risk, you must do your own research when making a decision.
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