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As the cryptocurrency markets enter the weekend, many investors are expecting Bitcoin (BTC) to see increased levels of volatility, as it has made some relatively large price swings over the past few weekends.
Although this volatility has been negative thus far, one cryptocurrency analyst now expects Bitcoin to possibly see a large upwards price swing in the next couple of days as long as it is able to finish the weekend above $3,480.
Bitcoin (BTC) Typically Sees Increased Volatility During Weekends
At the time of writing, Bitcoin is trading down marginally at its current price of $3,475. BTC has been stable in the upper-$3,400 region for the past several days after breaking below its previously established support level around $3,550.
Bitcoin’s typical weekend volatility around its current price levels first began on Saturday, January 19th, when BTC jumped to $3,750 from $3,650, before dropping back to $3,550. This drop established $3,550 as a level of relative support for the next week, until it finally broke below this price level on Sunday, January 27th, when it fell to lows of $3,400.
Although $3,400 has held as a level of support for the past several days, many analysts have previously speculated that Bitcoin will not see any major buying support until it revisits its 2018 lows that are set at around $3,200.
Analyst Claims Bitcoin Could Surge in Coming Days
In a recent tweet from Mitoshi Kaku, a popular cryptocurrency analyst on Twitter, he explained that Bitcoin may see a bullish price move in the next couple of days based on data from the Gann Price Cycle.
“Just finished a deeper $BTC analysis. I decided to move my longs around $3370 and a bullish break out around Feb 3/4. (Gann Time Cycle) – It is time things turns around!”
Just finished a deeper $BTC analysis. I decided to move my longs around $3370 and a bullish break out around Feb 3/4. (Gann Time Cycle) – It is time things turns around! 🐂 pic.twitter.com/7H55PxYtRG
— Joe Mitoshi 👨🏻🚀 (@CryptoSays) February 1, 2019
He later noted that he would like to see BTC’s price climb above $3,480 in order for the aforementioned bullish price move to remain in play, but also said that he is looking to enter new long positions around $3,280 if BTC drops further.
“Closed my longs partially here, for the rest I would love something around 3480 // Weekend getaway is here so I’ll probably fill lower longs in the next few days, looking at 3280. Long SL Order set too if the price breaks the HTF Resistance,” he explained.
Closed my longs partially here, for the rest I would love something around 3480 // Weekend getaway is here so I'll probably fill lower longs in the next few days, looking at 3280. Long SL Order set too if the price breaks the HTF Resistance. $BTC pic.twitter.com/3DlWK2cGfM
— Joe Mitoshi 👨🏻🚀 (@CryptoSays) February 2, 2019
How BTC trades over this weekend will likely set the tone for the coming week, but it is highly likely that a break below its support level around $3,400 will lead it to revisit its 2018 lows.
Featured images from Shutterstock.
