According to Kitco’s technical analyst Jim Wyckoff, Bitcoin is on the brink of a major price move that will come after weeks of indecisive sideways trading. He believes that Bitcoin’s next breakout or breakdown will happen as early as this week.
Bitcoin’s stability is worrisome
Wyckoff alleges that Bitcoin is bound to see some fireworks after its volatility has plunged to the lowest level since May.
Bulls and bears are presently on a level near-term technical playing field amid choppy and sideways trading that has turned very quiet.”
This prediction channels the one that was made by trading legend John Bollinger on Sept. 12. He pointed out that Bitcoin and altcoins were stuck in the Bollinger Bands (BB) Squeeze, which appears during the periods of low volatility.
In fact, BBands have only been in such a tight range only a couple of times throughout Bitcoin’s entire existence.
Bitcoin’s big week
With the great descending triangle of 2019 drawing to a close, Bitcoin will definitely keep traders on the edge of their seats this week. Considering that this bearish chart pattern has a high failure rate, both bearish and bullish scenarios are on the cards.
Chances are that the bulls will have a major cause for celebration given that descending triangles break upwards 63 percent of the time during bulls markets. Otherwise, it’s going to be bloody.
According to Bulkowski, descending triangles as a continuation pattern in an uptrend break out upwards 63% of the time.— Jacob Canfield (@JacobCanfield) September 16, 2019
As traders, it is our job to identify 'edges' that are greater than 50/50 to remain profitable.
Ideal scenario: Long support or long the retest of a breakout. pic.twitter.com/Cgs7Q0Mhqb