Bitcoin has seen some of the most boring price moves it has seen in over a year.
After more than two months between $ 9,000 and $ 10,000, the cryptocurrency has now narrowed its trading range to $ 9,000 to $ 9,300, with BTC mostly at $ 9,100.
The Digital Asset benchmark shows few signs that this trend will soon be broken, but an analyst believes this could mark the “calm before the storm”.
He claims that this sideways bout is likely to resolve in a massive move, noting that he tends to believe that the next step will benefit sellers.
In the past few days, crypto has been trapped under a crucial cloud formation. This suggests that further downward movements may be imminent in the coming days and weeks.
Another trader believes that continued trading under its cloud resistance could lead to BTC rising to just $ 7,800.
Bitcoin is expanding the range-bound trade battle as the technical outlook deteriorates
At the time of writing, Bitcoin is trading slightly at its current price of $ 9,060.
This is just a small drop from where the cryptocurrency was trading in recent days as buyers passionately protected themselves from falling below $ 9,000.
While there is still no sustained decline below this level, the cryptocurrency's response to its support in the upper $ 8,000 region is weakening with each visit.
This is likely the result of dwindling trading volumes and could be a grim sign of BTC's short-term outlook.
Periods of intense sideways trading combined with declining trading volume do not usually last too long and are usually followed by explosive movements.
This next move could benefit sellers as the cryptocurrency trades under its 4-hour cloud resistance for an extended period of time.
An analyst spoke about it in a new tweet, while a chart is offered showing that the $ 7,800 resistance has never been retested as support – a signal for a move to that level could be imminent.
"4 hours under the cloud – wake me up when that's over," he explained.
Image Courtesy of Teddy. Chart via TradingView.
BTC could witness the "calm before the storm"
Another respected trader lately considered the possibility that this continued sideways trade could be the "calm before the storm" that ultimately leads to Bitcoin making a massive move.
He notes that the small volume and narrow trading range are conducive to this possibility.
"IMO BTC is about to start: Friday was the candle with the lowest volume and the smallest range that I have ever seen. The calm before the storm? IDK up or down, more likely to think down … Will the risk control closely, ”he explained.
This next Bitcoin move is unlikely to take place over the weekend, but it could already happen this week.
Featured image from Shutterstock. Chart from TradingView.