It’s been a long time before there have been any positive movements on the Bitcoin price front. The price has been stuck in the $29,000 range, with no bounces or rebounds. The narrow trading range has been stuck for weeks, and it’s no different this week. Early on Tuesday, the price was down less than 0.5%. However, the overall trend remains flat, with the price not going much higher than $30,000.
That’s not necessarily a bad thing. The price has been stable for the first time since November 2016. It coincides with the lowering annualized volatility and derivative trading volumes. The flatlining price represents a short-term bias conflict among traders, meaning traders aren’t exactly sure what the next direction is.
Bitcoin ETF Approval Incoming?
A first Bitcoin ETF was largely planned to go live in the USA. However, it first arrived in Europe thanks to Jacobi, a company that registered the first Bitcoin ETF in Amsterdam. In the USA, there are rising expectations that the same might happen. BlackRock’s ETF might soon find its way to the market, and many believe that’s going to happen as the price has been flatlining for a while.
Concerns about the Fed’s interest rate hikes have increased the US dollar appetite. The USD index has rebounded from the critical lows in July which coincides with Bitcoin’s pullback from the record $31,500 it hit around the same time. The flat trend isn’t going to stop – many expect it to continue through mid-September.
From a technical viewpoint, there might be a massive breakout or a breakdown coming soon. The Bollinger Brands are one reason for it. Shrinking Bollinger Brands are usually an indicator for a strong volatility increase. This might help Bitcoin go out of the $28,500 – $30,000 range and hit a higher price point. Of course, the Bollinger Brands alone can’t predict Bitcoin’s next move. In fact, no one will – the technical indicators are just factors that can help us see which direction the price may swing in.
However, many experts remain optimistic, even if traders are concerned. For example, Market Tardigrade is convinced that a positive trend is coming. It found references between the flatlining price at the moment with the peaks in late 2017. At that time, BTC was stuck in the $350-$400 range before the breakout came in 2017.
Bears pin their hopes on a rising wedge pattern that might hint a potential reversal to around $15,000 in coming months. But, if Bitcoin holds its ground above the 20-day moving average, it might be able to prevent it. Even if the reversal comes, it may act as a jumping point for higher volatility and a higher price, which is what most are hoping for.
But, until something happens, it seems that the price will be stuck in this range until mid-September. There aren’t many things that can influence the flatline right now, so it seems that we’re stuck in the middle of a middling price point. Here’s hoping it passes soon.