Analysts widely anticipated Bitcoin to begin incurring heightened volatility following its recent movement up to $7,500 that was instantly followed by a full retrace. Despite these expectations, BTC has remained stuck within the $7,200 region as it struggles to garner any momentum.
Analysts are now noting that the cryptocurrency may currently be at a critical junction that will determine the direction it trends in the coming weeks and months, which comes as BTC finds itself caught within a tight trading channel.
Earlier this week, BTC incurred a swift and decisive surge that sent its price all the way up to $7,500 on major trading platforms like BitMEX, although its inability to maintain this momentum led it to fully retrace all of these gains.
The candle wick that resulted from this movement signals that mid-$7,000 region is a strong resistance level for the cryptocurrency and led many analysts to expect further short-term losses for the cryptocurrency.
In spite of this, BTC has been able to hold steady within a tight trading channel, which may continue to hold strong in the near-term.
Scott Melker, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, noting that BTC is “channel surfing” while pointing to the chart below.
Bitcoin Caught in Ascending Channel as Analysts Look Towards Next Big Movement
At the time of writing, Bitcoin is trading up just under 1% at its of $7,275, which marks an extension of the bout of sideways trading that it has been experiencing over the past week.
Channel Surfing. — The Wolf Of All Streets (@scottmelker)
Analyst: BTC Could Be Nearing a Critical Junction
As for where this channel could lead Bitcoin’s price, one analyst is noting the where BTC closes in the coming hours could offer significant insight into where it heads next, as it is currently at a “critical juncture.”
“$BTC: Critical juncture here, plays to be made depending on the outcome of the next 1H close. Close above and I’ll look for longs, below and I think we move south. At the moment it is looking like a rejection… let’s see,” HornHairs, a popular cryptocurrency analyst on Twitter, explained.
Critical juncture here, plays to be made depending on the outcome of the next 1H close. Close above and I'll look for longs, below and I think we move south. At the moment it is looking like a rejection… let's see. — HornHairs 🌊 (@CryptoHornHairs)
The coming weekend trading period may elucidate whether Bitcoin will be able to gain some upwards momentum and end the year on a high note, or if the ongoing downtrend will extend into the new year.
Featured image from Shutterstock.
