While financial forecasters are predicting a bullish 2019 for the bitcoin price, the cryptocurrency first needs to fight strong technical barriers in the near-term.
It is becoming difficult for bitcoin bulls to initiate a substantial push towards the $3,480-barrier and beyond. At the same time, their presence at the support area above $3,371 is stopping the price from further downside action. The situation has led bitcoin to remain rangebound, which is increasing the bearish sentiment in the near-term scenario.
On the intraday/weekly level, bitcoin could now pursue another selling action thanks to two pressing issues: lower volatility and volume. Let’s discuss them in the sections as follows.
Bitcoin is somewhat imitating the price action between January 26 and January 27. Back then, it was trending inside a triangle formation. As the pattern extended and trading range started contracting, the volume also began to diminish. In parallel, the gap between the upper and the lower Bollinger Band, which is directly proportional to an asset’s volatility, also started to minimize. On January 28, the bitcoin price broke down from the triangle pattern.