Bitcoin (BTC) showed no signs of breaking out on October 20 as bearish sideways action dragged on.
Analysis: Bitcoin fork is ‘crowded and critical’
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair held firm around $19,000 overnight, only moving about $400 up or down.
Common US shares opened without significant volatility, this was more focused on the UK, where the pound responded to the news of the resignation of Prime Minister Liz Truss.
Graphical data a spread on social media at the time of writing showed that the volatility of the pound and the volatility of BTC were almost the same, with the latter already in the least volatile period since 2020.
With the macro triggers failing, the analysis showed strong support and resistance levels that keep the price action moving.
“Bitcoin continues to trade in a crowded and critical range. “, yes abstract Keith Alan, founder of analytics platform Content Indicators, during the day.
Alan highlighted two major moving averages (MAs) converging and acting as resistance boundaries for the trading range.
“The 21-day moving average has a confluence with resistance at the ATH trendline, and the 50-day moving average has a confluence with resistance at the 2017 high.” – he explains.
Exchange data indicates how strong the breakout is
Continuing his investigation into the current trading range, Filbfilb, co-founder of the DecenTrader trading platform, was grim news for bulls.
Also read: Capitalization or profit taking: Whale moves 32,000 BTC idle from 2018!
An analysis of liquidation data on the Bitfinex exchange concluded that “breakout momentum to the upside” would not break out above the range.
Therefore there was a risk of a significant loss of support as a solid possibility based on trader activity.
Along with a chart of the breakouts, Filbfilb summarized that “a breakout above the range is likely to be less sharp than a breakout below.”
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