Since the beginning of the week, there has been an uncommonly-high number of significant Tether (USDT) transfers to various cryptocurrency exchanges — headlined by a $40 million transfer to the Binance exchange. Previously, we have discussed that Bitcoin very often experiences upward price surges whenever new USDT is released into circulation.
With the overall bullish action throughout the entire cryptocurrency market last week, it seems that more whales want to get in on the action. However, this has not had the bullish implications that were expected. On the contrary, the Bitcoin price has been effectively trading in a range between $9100-$9700.
Cryptocurrency trader @josh_rager outlined the short-term chart along with several key resistance and support areas — suggesting that a breakout above resistance will lead to a move in the $10,000s. Additionally, he has used the volume profile indicator, which helps in determining the validity of support and resistance areas.
$BTC – Lower time frame chart shows price in a few hundred dollar range
Daily support below, while overhead is the weekly and monthly open (resistance) with a break and close above these areas on higher time frames will likely be a signal to move up in the $10ks
— Josh Rager 📈 (@Josh_Rager) October 30, 2019
Let’s take a closer look at the Bitcoin price movement while trading inside this range and determine the direction of the ensuing move.
Bitcoin Price: Trading Range
The Bitcoin price has been trading inside a symmetrical triangle since reaching a high of $10,480 on October 26.
The closer we get to the end of the triangle, the trading range decreases — since the support and resistance lines converge. At the time of writing, the Bitcoin price was close to breaking down from this triangle.
Volume Profile Indicators
The volume profile indicators show that price levels in which most of the trading has occurred. As is visible above, the closest such level that can offer support is found at $8700.
Conversely, there is resistance until $9700 ù but it dissipates afterward. Based on this movement and indicator, it looks as if BTC will decrease towards $8700.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Twitter, TradingView.
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