Bitcoin (BTC) is now trading sideways despite the fact that financial markets in the United States continue to demonstrate a high degree of volatility and markets in China are facing significant falls.
Given that Bitcoin has been trading sideways between $18,500 and $21,400 for the last month, noted crypto trading analyst Michal van de Poppe highlighted the $19,500-$19,600 zone on October 25 as “critical resistance.” van de Poppe remarked that a short squeeze might occur if Bitcoin consolidates support at this level.
“If we break to the upside, we can state with certainty that after we break $19,500 and consolidate here, there will likely be a squeeze towards $20,700 and most likely $22,400 as we remove all the stops above these highs.”
In addition, the trader stated that, from a technical standpoint, Bitcoin may yet drop as low as $19,000 and continue to go upward, since it has been receiving support from this level.
Notably, Bitcoin’s rolling volatility over 20 days has dipped below the S&P 500 and the Nasdaq stock indexes for the first time since 2018, as it has shown growing resilience to rising rates and a stronger US Dollar in recent weeks. Despite the stabilization of Bitcoin’s price, van de Poppe emphasizes that “volatility will rapidly escalate.”
Finbold also observed on October 25 that long-term Bitcoin holders continue their ‘hodling’ habit and today possess over 75% of all Bitcoin in existence, the greatest proportion in seven years, since October 2015.
According to crypto researcher martuun, the conduct of long-term Bitcoin investors reflects the cryptocurrency’s ‘strong support.’
Also Read: Data Reveals That 75% Of BTC Is Held By Long-Term Holders
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