The past few days have been relatively volatile for the price of Bitcoin. Before last weekend, hardly a day passed when the price did not fluctuate more than $ 1,000. Last weekend, however, some calm came to the market.
As the data analysis company Santiment shows, the market slowdown is also reflected in Twitter's “social volume”. When Bitcoin reached a new record on some exchanges on December 1, there was great euphoria. However, after BTC failed several times to break through the $ 20,000 and establish it as a support level, the hype flattened out a bit.
According to the social volume and the proportion of Bitcoin positive and negative comments on Twitter, it seems that the euphoria has eased somewhat because market prices have risen just under $ 20k in previous attempts. But even more optimism than BTC's normal resting average.
With a closing price of just under $ 19,400, bitcoiners can celebrate the biggest weekly close ever. Many analysts see this as a confirmation that Bitcoin is currently not forming a "double top" close to the $ 20,000 mark. However, this can be lull before the storm.
Is the price of Bitcoin again threatened by strong volatility?
According to analyst "Hornhairs", BTC formed a symmetrical triangle formation on the 1-hour chart, which can confirm the upward trend if the price exceeds $ 19,500. On the other hand, a loss of $ 18,600 could mean another correction. At the time of writing, bitcoin is around $ 18,800.
The analyst “Credible Crypto” shared a much more optimistic analysis. After the big bullish run in November, the past 3 weeks may have been the correction eagerly awaited by many analysts. According to Elliott Wave's analysis, BTC may go “to the moon” in the coming days.
Despite the predominantly bullish sentiment in the long run, however, there are also voices warning of a significant additional correction. The selling pressure between $ 19,500 and $ 20,000 is still considerably high and could make it even more difficult for the stock price to rise further in the coming days and weeks.
With that in mind, “Crypto_birb” recently stated in a tweet that Bitcoin may experience massive volatility again in the coming days. He pointed to a triangular formation that formed after the cryptocurrency's recent decline to lows of $ 16,400.
Read more: Edward Snowden: the dollar lost 99.9% of its value against Bitcoin
Invest in cryptocurrencies with security, high liquidity and the lowest rates in the market.
NovaDAX: the most complete exchange in Brazil with more than 25 cryptocurrencies listed and the best customer service score.