Could Bitcoin price drop in the coming days?

After four new days of flat consolidation, Bitcoin seems to be in the process of regaining some volatility. This long lateralization could result in a powerful fall in the coming days.

A daily situation that leans towards a decline

The daily situation of Bitcoin (BTC) remains difficult to analyze. Indeed, BTC is still in its large range between $ 8,700 and $ 10,000, chaining low-intensity neutral candles.

Prior to July, there were two scenarios possible for the Bitcoin price. The first, bullish, speculated on a trend reversal carried by a double-dip figure and supported by a bullish divergence on the MACD .

However, the validation conditions were not respected. For this scenario to have been validated, it would have been necessary to leave the large bearish channel that Bitcoin has held since the beginning of June.

Unfortunately, this was not the case. The upper oblique of the canal once again played its role of resistance perfectly. The course slipped against an additional four days, never managing to pierce it.

The first hypothesis is also invalidated because Bitcoin has finally closed under the support of $9,250. We can therefore put aside our reversal figure.

We are therefore now in fact in the context of the second hypothesis, that is to say in a continuation of the downward trend.

For the moment, Bitcoin remains in its bearish channel, the exponential moving averages that were flat are now pointing back down.

Intermediate support at $9,250 is now becoming resistance, while momentum indicators MACD and RSI are ironing bearish.

Also at Ichimoku, the course is found in all the components: Tenkan, Kijun and SSB forming a ceiling at $9,260.

If it is necessary to monitor today’s closing to have all the confirmations, it seems clear that the trend remains downward. Currently, BTC has a multitude of resistances above it and the logic seems to lean towards a bearish continuation.

The explosion is near!

If the indicators point more towards a bearish continuation, there is one thing that is certain for Bitcoin: we will have to be careful.

Bitcoin is experiencing a historic loss of volatility with already two and a half months of lateralization.

The Bollinger Bands have moved closer together and are flat. Only very rarely have they been tightened, and each time that has happened, a rapid and powerful movement has taken place.

Volumes are still extremely low and volatility is at an all-time low.

For the moment, the resistance on the price is holding, so there is no reason to be bullish. The only thing that can be said today is that a very intense movement is being prepared.

Whether for a decline, which is most likely today or for an increase, which can always happen, we should expect an explosive resumption of volatility.