Bitcoin has entered another consolidation phase in the region with less than $ 9,000. Crypto is struggling to gain momentum as both buyers and sellers find themselves at a dead end after the recent decline.
It now appears that crypto could prepare for a massive move in the coming days and weeks as it rapidly approaches two major moving averages that have historically triggered immense volatility spells.
If history repeats itself, BTC could experience a longer, troubled trade, followed by a breakout.
However, analysts remain cautious on short-term price developments since yesterday's daily closing broke the market structure.
Bitcoin is fighting for more momentum as it enters a new phase of consolidation
At the time of writing, Bitcoin is trading just over 2% at its current price of $ 9,210. This is a slight increase from the daily lows of $ 8,800, but a decrease from the recent highs of just under $ 10,000.
The continuing downward trend in the cryptocurrency occurred after a long period of consolidation in the middle of the $ 9,000 region.
During this consolidation phase, Bitcoin buyers made several attempts to push crypto beyond $ 10,000. However, each of them encountered strong selling pressure, which subsequently lowered the price.
This price drop was triggered by news that a Satoshi-era Bitcoin wallet was moving 50 BTC.
The wallet was previously inactive for over a decade and raised concerns that an early adopter might be prepared to unload some of its inventory.
However, it doesn't appear that this was the case, but the technical damage caused by the news sell-out seems to have changed the cryptocurrency market structure.
A popular cryptocurrency analyst on Twitter explained Yesterday's daily closing caused crypto to peak and break through its market structure.
"BTC: In connection with HTF resistance, highs and MS were broken at the end of the day. Looks rough and sold a seat, ”he remarked, pointing to the table below.
Analysts warn that turbulence is imminent
Another analyst recently stated that he believes Bitcoin will experience some "turmoil" in the coming days and weeks before making a trend-setting move.
He explained that the cryptocurrency is rapidly approaching two moving averages, and visiting these levels is likely to trigger a big move.
“Expect a bit of turbulence here… Approaching two strong resistances: – 89 ema (black) – 21 ema (green). The trend will remain bullish as long as a major trend remains in the cloud, ”he said, pointing to the pattern shown below.
The earlier extended consolidation phase earlier this month caused Bitcoin to experience a remarkable upswing that led to over $ 10,000.
If Bitcoin stays above its cloud structure, the cryptocurrency could be well positioned to see an increase in the coming days and weeks.
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