The bitcoin <a href="https://www.bloomberg.com/news/articles/2019-08-26/bitcoin-bullied-into-tighter-trading-range-with-top-at-11-800">trading</a> range is shrinking as speculators seek to position themselves on the right side of the possible explosion.

According to last month's volume-weighted price analysis by Bitstamp, market optimists rush into bitcoin trading when the price falls below USD 10,000, while pessimists seek to exit the asset when the price approaches USD 12,000.

"It is irrational how people get obsessed around psychological levels," Carig Erlam, an expert market analyst with Oanda in London, said in an interview. "It is as if Dow people are obsessed with me breaking the 20,000 marks," he said, referring to the ongoing testing of the Dow Jones industrial average at that level. It surpassed it three years ago and is currently above 25,000.

When trading the world's largest <a href="https://www.cryptoknowmics.com/crypto/cryptocurrencies-unique-features-allow-terrorist-to-fund-their-activities-undetected/">cryptocurrency</a>, it is essential to identify the exact levels at which adrenaline rages in the market. This is because, possessing few fundamentals and an opaque ownership structure, knowing each other's pressure points can be paramount for investors.

Data now point to growing confidence in the cryptocurrency when it stays above the USD 10,000 limit, and this decreases when it approaches USD 12,000. The price of bitcoin has closed above USD 12,000 five times this year. Bitcoin is almost presenting an inverted bell curve in prices, as the analysis shows.

"Currently its range is limited," Erlam said. "And the highs it has reached are getting lower and lower. When you break this range, you might see a strong enough move down."

Bitcoin volatility has declined over the past month. Its average daily movement in 30 days is 2.4% up or down, compared with 5.5% in mid-July, according to another study by Bloomberg.

A similar study using information from Coinbase Inc., another major crypto platform, also showed an intense concentration of around USD 10,000, which declined as the price approached USD 12,000.

it's a matter of knowing what the future holds for us about the price of bitcoin.

Price range for trading bitcoin is narrowing more and more

I am an industrial engineer specializing in blockchain. Enthusiast of cryptocurrencies and writing the latest news regarding the Crypto world.

Price range for trading bitcoin is narrowing more and more

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