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18 Oct 2022
Bitcoin’s trading range tightens below $20,000
The trading range for bitcoin is tightening even more this week, with bitcoin mostly trading between $19k and $20k. Bitcoin briefly touched levels below $18.5k for the first time in three weeks but quickly recovered.
We’re sticking to the same analysis for the third week in a row as bitcoin’s trading range tightens even more this week. Bitcoin has mostly been trading between $19,000 and $19,500 over the past week, except for a 24-hour window last Thursday.Source: Tradingview (Coinbase)
The bitcoin price crashed to ~$18,100 along with equities as the latest inflation numbers in the U.S. came in above expectations. This was the lowest price seen since Sep 21st.
The BTC price quickly recovered, and the support level we have been referring to lately held again. With the tight trading range, most traders will benefit from sitting on their hands until we break out above the resistance area or below the support level highlighted in the chart to the right.
Only the very short-term traders betting on volatility were rewarded last week, as the price movement and volatility diminished after just a few hours of intense price actions. We still believe there is potential for a more extensive volatility play, with historically low volatility and a tight trading range.