Bitcoin has once again entered a downtrend after failing to break the $70,000 resistance level, and analysts are anticipating a significant price movement in the short term. Currently trading at $67,111, BTC is expected to experience increased volatility in the coming days. If Bitcoin manages to exceed $69,000, a rapid surge may follow, but for now, the ongoing consolidation signals uncertainty.
Bitcoin’s Struggle at $70,000
After failing to surpass the $70,000 mark, Bitcoin (BTC) is now in a tight consolidation phase, indicating the potential for a significant breakout in the short term. Analysts predict that Bitcoin’s volatility will rise in the coming days, leading to a major price movement. At the time of writing, Bitcoin is down 0.8% and trading at $67,111. In the last 24 hours, BTC reached a low of $66,740 and a high of $67,740. The 24-hour trading volume stands at $31.57 billion.
Continued Market Fluctuations for Bitcoin
This month, Bitcoin’s price volatility has been particularly noticeable at the start of the last quarter of the year. Historically, market participants have expected an end-of-year rally, but the current situation shows mixed signals. Bears are maintaining their pressure to push prices lower, while bulls struggle to gain momentum. The upcoming expiration of BTC options this weekend has left many wondering how the market will react.
Bitcoin is still trading above its 50-day exponential moving average (EMA), but several short wicks in the price action indicate indecision. The price has formed a support zone between $68,656 and $66,806, but the ongoing consolidation suggests resistance to an upward move.
Will the Bitcoin Rally Continue?
The current consolidation is causing uncertainty for market participants. There is a short-term risk of Bitcoin dropping to $65,400, but if the price surpasses $69,000, a major liquidation event could be triggered, pushing prices higher. However, the current low volume suggests a possible price rejection at these levels.
Even if Bitcoin starts to recover, a strong resistance zone remains in place. For a new bullish trend to emerge, $68,800 must be breached, and bulls will need to defend this level. If not, further price declines are likely, and Bitcoin may continue its volatile movement into the weekend.
Historically, the Bitcoin ecosystem tends to exhibit higher volatility in the last quarter of the year. In particular, the interest from Bitcoin ETFs and institutional investors could lead to significant short-term market moves. Additionally, the increasing difficulty in Bitcoin mining is expected to influence price movements as well.
