Bitcoins (BTC) Big Breakout Looms: Will It Hit $106K or Fall to $84K?

As Bitcoins upper Bollinger Band nears, support and resistance levels are set to converge, potentially triggering a significant move.
After filling the CME Gap, Bitcoin traded steadily, but ETF inflows could soon provide fresh momentum and increased volatility.
The tightening price range signals an upcoming breakout, with the next 24-36 hours likely bringing substantial shifts in Bitcoins value.

Bitcoins upper Bollinger Band is fast approaching and its support level together with the resistance level will be achieved in the near future. And this convergence can lead to a large scale up move as indicated by Crypto Rover in a recent YouTube video. The most critical period would be the next 24-36 hours, when the market might switch in its activities.

During the weekend, there were no significant fluctuations in the price of Bitcoin. After filling the CME Gap, it was trading around $96,500 level. However, focus revised to the possibility of flows from Bitcoin and Ethereum ETFs after the market opened today. These inflows may also give the market fresh impetus for what could be substantial volatility.

BTC/USD: Breakout or Breakdown?

On the 4-hour time frame, BTC/USD looks like it is in a falling wedge formation. If the price of Bitcoin manages to go above the indicated downward sloping linear regression line, then it would have a target of reaching the $106,000 mark. Nonetheless, some analysts are convinced that the current structure of prices correspond to a symmetrical triangle, and a breakdown to around $84,000 is possible. The sentiment regarding Bitcon is quite divided at the moment, which means that there is potential for both a bullish and a bearish outcome.

Source: CryptoRover

The price of Bitcoin continues undergoing increasing price volatility and is forming lower highs and higher lows. The possibility of a breakout of trading range is expected since the range is slowly tightening. The most important issue to be decided once the breakout occurs is which side of the breakout will be taken. The volatility within the next 24 to 36 hours may cause a drastic shift in the price, which is suitable for traders and investors to focus on.

Analyzing the BTCUSD pair in the daily chart, it was found that it is now operating within a lengthy consolidation zone. This phase has exceeded three months, and such a term might not be a mere one or two weeks phase but rather a more significant trend. If Bitcoin price weakens its critical level, then it will continue to decline lower. Nevertheless, it is for the same reason that if the support is or becomes favorable, then the price might surge higher in the near future.

Market Fear Creates Opportunity

At the moment, the market is unleashing considerable fear. Despite the presence of price stability at around $98,000 in Bitcoin, people are still ambiguous about it. Perhaps this fear should be read as an opportunity for those willing to take a chance at a devastated market in which only a few of them survive. Bitcoin is facing uncertain future as the cryptocurrency markets landscape is still dynamically changing to this date.

Source: CryptoRover

Ethereum, meanwhile, is holding steady. Although Ethereum is in a bearish trend it is fulfilling certain important supports. The price bemoans a cumulative bearish trend, but a reversal of this trend could be seen if it institutes a base at this level. The fact that Ethereum has held ground during the latter trend may mean that the market has a fighting chance as Bitcoins trajectory remains unclear.

The price movements of the Bitcoin will become important in the next few days more than its social aspects. Such a convergence of support and resistance can trigger a breakout in the markets and even change the market dynamics. Generally, traders are now waiting for the farther movement of the next hours if it will go up or down.

Text source: TronWeekly

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