Analysts expect Bitcoin to falter as price fails to break past low-$7,000s

Over the past week, Bitcoin has found itself flatlining, establishing a tight range in the low-$7,000s as volume tapers off. This consolidation has forced the Bollinger Bands, a technical analysis tool often used by traders looking for more information about trading ranges and volatility, for Bitcoin to reach “squeeze” levels, implying that volatility is on the horizon.

While this consolidation is arguably neutral, neither bullish nor bearish, a growing number of analysts are starting to suspect that the impending bout of volatility will take the form of a breakdown under $7,000, with this suspicion being corroborated by the fact that BTC has yet to break above the key resistance in the $7,800 to $8,000 region.

One of our analysts are posting the chart below to illustrate that bulls are in no position to gain an advantage over bears. On-balance Volume, an indicator meant to relate price to volumes, has formed a bearish pennant on the six-hour BTC chart, implying bearish price action is forming, while the Accumulation/Distribution indicator largely implies that distribution is taking place.

He currently expects the Bitcoin price to retrace to the $6,200 to $6,400 area, which he claims could provide strong support for the cryptocurrency market. Though, if that support is lost, he is fully expecting a move to the low-$5,000s.

Bitcoin, currently ranked #1 by market cap, is down 2.4% over the past 24 hours. BTC has a market cap of $128.29B with a 24 hour volume of $17.23B.