The volatility of Bitcoin continues to drop to new lows for 2018 as Average True Range (ATR) reaches the 228 value. Bitcoin is currently trading around $6575 at the time of writing with the descending triangle pattern which has been forming since January nearing its end.

Many are seeing the low volatility and consolidation as a sign that price is bound to undergo either a bullish or a bearish breakout. A bullish breakout would see the price rise above the downward trendline of the triangle and significantly close above. In this scenario, resistance would be expected at the $6850 mark. The higher lows that have been forming with price action would support this outlook

In the event of a move downward, the price would fall back to sub-$6k mark and fall sharply below. Price has been at sub-$6k levels a number of times already this year, but many analysts believe a return to these levels will result in much more of a bloodbath for prices.

There is also the possibility that price could continue to consolidate. This scenario would be supported by ATR reaching lows of 2018 along with the consolidation we are seeing in RSI. MACD is also trading flat, and trading volume is significantly below 20-period average daily volume. Both these factors also represent a consolidating market trading in a tight range. It is not an ideal market for traders to take positions and many are waiting to see whether price action breaks to the upside or the downside which leads even further to the flat trading. The outlook is currently neutral. A close above $6850 makes it far more likely we are to see a bullish breakout while a close below $6250 makes the bearish scenario much more likely.

Bloodbath in Store for Bitcoin Price As Descending Triangle Approaches End? was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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