Analysts Expect Major Weekend Volatility as Bitcoin Attempts to Find Its Footing
Bitcoin and the aggregated crypto markets have been incurring notable volatility over the past several weeks, which has primarily been cause by Bitcoin’s recent parabolic surge towards $13,800, and subsequent drop into the $10,000 region.
Now, analysts are warning that the weekend trading session could be a time where the markets once again experience a volatile movement, which may mean that traders and investors alike will soon know where the markets are heading next.
Bitcoin Struggles to Break Into $12,000 Region
At the time of writing, Bitcoin is trading down 1% at its current price of $11,785 and is down slightly from its daily highs of $12,500 that were set yesterday.
While zooming out and looking at Bitcoin’s weekly price action, it becomes abundantly clear as to just how volatile BTC has become as of late, as earlier this week it quickly surged to highs of $13,800 before incurring a significant influx of selling pressure that pushed the price to lows of $10,500.
This volatility is emblematic of the improving market conditions, as BTC still remains in a firm uptrend despite its inability to push past $13,800.
Historically, Bitcoin and the entire crypto markets have incurred a good majority of their volatility during weekend trading sessions, which Hunter Horsley – the CEO of Bitwise Asset Management – attributes to the large amount of retail investors who trade during weekends.
“The market is, by and large, retail individuals and I think that weekends are a time when those people have more free time to read the week’s news, to chat with friends, to pitch friends on exciting things they heard about during the week,” he explained while speaking to Bloomberg.
So, Where Will This Volatility Lead BTC This Weekend?
Although the next 48 hours or so may hold some volatility in store for BTC, one analyst believes that the cryptocurrency will begin bouncing between the upper and lower boundaries of a recent established trading range.
Cantering Clark, a popular cryptocurrency analyst on Twitter, spoke about this trading range in a recent tweet, explaining that the most immediate range Bitcoin is caught in exists between roughly $11,600 and $12,200, which may persist for the foreseeable future.
“Look at the reactions, notice many of these and you can assign greater importance to these areas moving forward. Trade the range now until the weather changes,” he explained in a recent tweet.
Although Bitcoin is largely flat at the present and may continue to trade sideways in the near-term, it is highly unlikely that its recent volatility ends here, and traders will likely gain a better understanding of which direction the cryptocurrency is heading next as the weekend drags on.