Analytics provided by BBA Bitcoin looked poised for the return of at least some volatility last week, however none materialized. Now that price is back above the $600 level on what are still mixed technicals, we think another week or two of sideways chop is most likely in terms of price action over the short-term. Last week we made a point of discussing price volatility, or the lack thereof, because we thought there was a decent chance it could make a return to the Bitcoin markets in the not too distant future. Well, apparently we are not there yet given that the $590 support held over the weekend and we are now back in the old $600 – 610 trading range. This tells us that we may be in store for another week or two of choppy consolidation prior to the upside resolution we have been anticipating for quite some time. Despite the fact that this lack of movement is an active trader’s worst nightmare, it will give longer term players more time to accumulate, which should make the eventual breakout even greater in magnitude. “The longer the base, the higher in space”, as they say. Seeing as though there is not much to discuss on the fundamental side of things this week, we will jump right into the daily chart below for a look at the medium-term technicals. We can see that the price remains in the symmetrical triangle formation, although it continues to hug the upper half which is a pretty good sign for the bulls. Also, notice how the price dropped down to the top of the pivot area but was rejected, which tells us that the bulls are stronger at the current levels than previously expected. This is confirmed by the A/D line which remains […]
