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The Bitcoin volatility is at an all-time high as the biggest cryptocurrency in the world continues its parabolic price surge to the $20k price all-time high region.
This increased volatility saw Bitcoin surge more than $1,000 in less than 12 hours. Breaking through the $17,000 key resistance and getting as high as $18,480 before retracing back down to the $17k region.
In this Bitcoin analysis, we will be talking about why we are seeing this increased volatility as well as key patterns and price level to keep an eye on in the coming days.
Will We See A Blow-Off Top?
Bitcoin is very close to its all-time highs and is also currently trading within a price region that was last traded during the bull run of 2017. This means little to no resistance and a lot of open ground for the Bitcoin price to move and range in.
However, it is also important to note that Bitcoin has gained over 154% in just 2020. This makes it one of the highest performing assets for this year.
But the price cannot just keep on joining higher forever, whatever goes up must come down, and right now, Bitcoin is overextended. This means sooner or later we are definitely going to see a correction. And that correction might occur around the $18,000 to $20,000 region.
Having this at the back of your mind ensures you do not get caught holding the cryptocurrency when it finally starts retracing. And with this rising volatility, the price dump might occur in a flash.
Key Levels To Watch For
The key pattern I am still watching is the rising wedge pattern the Bitcoin price just broke out of in the 1-hour timeframe. This pattern is very important because a price retracement back down to the range of the pattern can help us determine how low Bitcoin would retrace to.
If Bitcoin finds support on any of the trendlines and bounces up, then we can expect the bulls to continue controlling the market and pushing the Bitcoin price higher in the coming days.
However, if Bitcoin breaks through these two trendlines, then we can expect to see a further decline in the Bitcoin price in the coming days.
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.
