Bitcoin Could Revisit Recent Lows if it Breaks Below $7,120; Here’s Why

Following the recent bout of turbulence experienced by Bitcoin and the aggregated crypto markets, BTC has been caught within a firm and tight trading range that has led it to consolidate for the past several days.

Analysts are now noting that which boundary of this trading range is broken through first could offer significant insight into where BTC and the aggregated crypto markets will head going into the first part of 2020.

Bitcoin Begins Building Some Upwards Momentum 

At the time of writing, Bitcoin is trading up over 1% at its current price of $7,260, which marks a notable climb from its daily lows of $7,140 that were set last yesterday evening just before it incurred an influx of buying pressure that sparked this morning’s upwards movement.

Later today, Bitcoin will post its weekly close, which typically sets the tone for the week to come. As BTC heads into this close, its price action will likely see heightened volatility and bulls and bears battle to gain the upper hand over one another.

Today’s tempered signs of volatility come after a multi-day period of sideways trading that came about as a result of Bitcoin’s recent volatility that sent it from lows of $6,400 to highs of $7,600.

FlibFlib, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that the crypto is showing some signs of bullishness on lower time frames as it nears its weekly close.

“$BTC Starting to look like it has a bit of life in it on lower time frames. Would be nice to get a rally off the back of a nice looking weekly close in the green. Alas, one can only wish for what they want for Christmas,” he noted.

BTC Could Be Close to Posting Decisive Movement

CryptoBirb, another popular cryptocurrency analyst on Twitter, explained in a tweet that how Bitcoin’s current trading range resolves could offer significant insight into how BTC will trend going into the new year.

“If struggling to find optimized stop-loss levels for $btc you can use PSAR (Parabolic Stop and Reverse) to help you decide. Closing 4h or HTF candle below 7120 leans towards 6800s. Expect volatility around the weekly close,” he explained while pointing to the chart seen below.

While looking towards his chart, it is clear that if Bitcoin breaks above $7,300 it could surge to resistance at $7,900, but a rejection at its trading range’s upper boundary could spark another movement down to the $6,000 region.

Featured image from Shutterstock.