- Bitcoin and Ethereum are consolidating within a narrow trading range.
- Bitcoin may have resumed its macro-uptrend, said a renowned technical analyst.
- XRP prepares for a major event that could trigger an increase in demand.
Last week, the total crypto market capitalization surged over 40% to reach a high of $267 billion. During this time, approximately $77 billion was injected into the market. Bitcoin jumped over 42% while Ethereum and XRP rose nearly 30%. Despite the bullish impulse, these cryptocurrencies entered a consolidation phase and could be on the verge of a significant breakout.
After a massive $3,150 upswing that occurred between Oct. 23-26, bitcoin seems to have stabilized within a trading range. This area is defined by the lower and upper Bollinger bands that sit around $9,055 and $9,450, respectively. As the Bollinger bands squeeze, indicating low volatility, they foresee that a period of high volatility could be underway. Trading between these support and resistance levels poses high-risk exposure and must be considered a no-trade zone.
If bitcoin moves below $9,055, the selling pressure behind it may increase, taking it to $8,550 or $7,900. On the other hand, a spike in volume that allows this cryptocurrency to break above $9,450 could be succeeded by a further upward advance to $10,000 or $10,800.
Bitcoin is consolidating between $9,055 and $9,450. | Source: TradingView
CCN reached out to Michaël van de Poppe, a full-time trader based in Amsterdam, to gather his opinion about the current state of the market. The technical analyst believes bitcoin has bottomed out and already begun a new uptrend.
According to van de Poppe:
“Bitcoin has bottomed out of the correction wave and is in a ‘range’ period right now.