Analysis: BTC may experience range fluctuations, with $110,000 constituting the first strong resistance level
According to Cointelegraph, research by CryptoQuant suggests that Bitcoin will continue to experience range fluctuations. Analyst Percival pointed out that the 14-day volatility index (CI) of Bitcoin is in the early region, showing a correction trend during consolidation.
It is reported that the higher the CI value, the greater the market volatility; and lower values indicate an upward or downward market trend. This means that in short term, Bitcoin bulls may see slow progress in price discovery. As of December 7th when this article was published, daily CI measurement was at 56.7 - its highest level since mid-August.
Percival stated that by looking at actual prices held by short-term holders of Bitcoin one can predict strong resistance levels likely to be encountered in the market. The first resistance level is $110k (+1.5sd), which for STH represents a significant profit zone,"When traders connect with psychological numbers, $120k has a very large psychological and emotional impact and as a value within +2sd it makes this baseline become an even deeper integration area."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The Bank of Japan's interest rate hike still fails to impress the market! Hedge funds slash yen long positions by nearly 80%, while dollar long positions increase significantly
After the Bank of Japan failed to deliver a clear enough signal of further interest rate hikes to the market, hedge funds have significantly reduced their bullish bets on the yen.
US Treasury yields continue to rise! Cleveland Federal Reserve President: Government and AI compete for funds, fueling rate hike expectations
Cleveland Federal Reserve President Loretta Mester stated on Friday that the recent sustained rise in long-term U.S. Treasury yields is the result of multiple factors working together.
Crypto prices
More
