Bitcoin’s recent behavior remains highly volatile. However, a look from a distance shows that the situation might not be as bad as it looks. BTC’s charts are showing a factual to the coin.
Bitcoin price has seen another significant drop in the last seven days — one from which the crypto king is now trying to recover. The fall came in the middle of last week after the coin spent the first half of it going above and below the $10,250 level. After being above it first, treating it as a support, BTC suddenly broke it, and it became a resistance.
The coin attempted to breach the resistance a few times between Monday and Wednesday last week, but every time BTC got the close actually to do so — the price was rejected.
What followed was a $500-sharp drop, which happened almost instantly, and it took the coin from $10,250 to $9.750. This support did not manage to hold for long, however, and the coin soon started dropping even lower, to $9,500. This level, thankfully, managed to hold and kept the coin from seeing future losses. The situation even started seeing an improvement as the day came to a close.
BTC started growing as August ended, slowly climbing to a resistance-turned-Support at $9,600, and then going beyond, successfully breaching the resistance at $9,750 in the last few hours. Many believe that this won’t last long, however, and that BTC volatility will grow significantly in days to come. So, the fact that Bitcoin is hugely unpredictable remains, and the coin can pretty much do anything at any time.
Bitcoin’s past performance
If we take a step back for the moment and take a look at Bitcoin’s performance in the past month — it is clear that the coin has been losing value. At the beginning of August, its price was at $10,400, only for it to surge to $12,000. However, after trying to breach the resistance at $12,000 for around five days — BTC lost its strength.
The coin started dropping, and ever since then, the $10,400 price level has proved very significant, acting as a support and resistance for Bitcoin price. Now, the coin seems to have abandoned it for an even lower one at $9,800.
The three-month chart, however, shows another picture yet again. It shows BTC breaking resistance at $9,000 back on June 16th, and then going up and down between the support at $9,000 and resistance at $12,000.
The current drops are nothing new when looking at the situation from this angle. They merely represent another stage in the coin’s cycle. In fact, when looking at the chart from a greater distance, it might seem like a new surge is about to arrive — one that will take the coin back up to $12,000 in another attempt to breach this level.
Finally, taking yet another step back, to a YTD chart, we can see that the coin is still way beyond the price which it had at the beginning of the year. The current situation from this viewpoint looks more like a minor obstacle that currently manages to hold BTC in place but is not forcing it to give up too much ground.
In conclusion, if any volatility is about to arrive, it will likely be welcomed by anyone who holds Bitcoin (BTC) right now, as the price is at the time in its cycle when another growth is expected to come.