Bitcoin faces tough daily resistance as BTC price matches British pound volatility
Bitcoin (BTC) showed no signs of breakout on October 20 as tempting sideways action dragged out.
Analyst: Bitcoin Space ‘Congested and Critical’
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was firmly capped at around $19,000 overnight, moving only around $400 up or down.
US stocks opened without significant volatility, this focused more on the UK, where the pound reacted to the news that Liz Truss had resigned as Prime Minister.
Map data circulates on social media at the time of writing showed that GBP and BTC volatility had become virtually identical, the latter already in its least volatile period since 2020.
With macro triggers having no impact, analysts flagged solid support and resistance levels that kept price action in check.
“Bitcoin continues to trade in a congested and critical area,” Keith Alan, founder of analytics resource Material Indicators, in summary on the day.
Alan highlighted two important moving averages (MAs) that approach each other and act as resistance limits for the trading area.
“The 21-day MA has confluence with resistance at the trendline from the ATH and the 50-day MA has confluence with resistance at the 2017 peak,” he explained.
Exchange data hints at the strength of the breakdown
Continuing investigation of the current trading committee, Filbfilb, co-founder of the trading package DecenTrader, had some bad news for bulls.
Related: Capitulation or Profit Taking? Bitcoin whale moves 32K BTC dormant since 2018
Analysis of liquidation data on major exchange Bitfinex concluded that an upside breakout from the series “would not have the momentum that a downside breakout would achieve.”
The danger of a serious loss of support thus remained a fixed possibility based on the trader’s activity.
Alongside a chart of liquidations, Filbfilb summarized that “a break above the range is likely to be less brutal than one to the downside.”
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