Bitcoin’s volatility is like no other, it causes the price to fluctuate anywhere between $500 to $1,500 dollars. All of this, on a good day. On bad days, however, there is no volatility causing the price to go sideways. Yesterday’s drop was a demonstration of the volatility. BTC dropped from the $10,100 range to $9,200 range, opening floodgates of liquidations.
At the time of writing, Bitcoin hovered at $9,600 and looked as though the ground beneath the asset might give away. The collapse from here would definitely put a dent in Bitcoin’s uptrend.
- Bitcoin’s stance at $9,600 is fleeting. A collapse below seems likely.
- Massive bullish momentum could potentially push the price to $9,200.
60 Minute Bitcoin Chart
The one-hour chart of Bitcoin shows a clear picture of the price breaking out of the falling wedge pattern resulting in a positive break. The price pushed from a low $9,600 to a high of $10,276, once again, demonstrating the volatility.
However, as many speculate, the ecosystem is ripe with manipulation, the price immediately collapsed, retracing its immediate uptrend, causing even more liquidations.
Since then, the price has been quiet for a couple of hours. However, the supposition here is that there is going to be a surge in volatility causing the price to slowly trickle down to the mentioned support levels.
The first support $9,450 which is an obvious level considering the past trading data. But the most important level is the one between $9,450 and $9,275, seen in the range-bound volume profile – $9,300. Even if the price dips below $9,450, the price going down to $9,275 is less likely, as it will be supported by $9,360.
Adding to its downtrend is the Stochastic RSI which has already hit the oversold zone, ie, above the 80-band. As depicted by history, the price tends to collapse after Stochastic RSI cross this zone. However, one likely thing to expect is that the Stochastic RSI will take time to head below the 80-band, which will be translated into the price as a sideways movement.
However, if the price decides to head up from its current residence, it will be faced by the Volume Profile’s Point of Control (PoC) at $9,785. The price is unlikely to get beyond this level unless hit with volatility discussed earlier.