Bitcoin has finally started to slow down over the past few weeks. The coin has been trading with support at $7,000 levels and a heavy resistance at $7,800 levels. The coin hasn’t moved above or below these two boundaries for over ten days now.

Analysts believe that this tightening bitcoin price action could be a precursor for a large price movement of the coin. This expected move may determine the direction of the market for the next few weeks or even months. The direction as to which the market is expected to move in the near future is of interest to everyone.

Big Chonis, a popular trader, recently noted that bitcoin’s Bollinger Bands on the one-day chart are starting to consolidate. The bands are tightening as prices have stagnated in the low $7,000 levels.

Investopedia explains Bollinger Bands as a technical analysis tool defined by a set of lines plotted two standard deviations away from a Simple Moving Average (SMA). It gives a measure of the market’s volatility.

The analyst noted that the last time bitcoin’s Bollinger Bands were like this, it saw strong 15%+ moves. The coin may make a much bigger move than what it has experienced over the last few days, should history repeat itself.

Another popular analyst, Jonny Moe, is also in support of what Chonis is saying. He too noted that, bitcoin has seen a series of lower and lower highs as well as higher and higher lows, over the past few days. This implies a widespread indecision in the market and thus an impending volatility.

Most bitcoin analysts are optimistic. A top trader, Cantering Clark, recently observed an uncanny resemblance between the first major correction and the following accumulation period. The similarities suggest that bitcoin may soon surge to break out of accumulation.

Another bullish indicator is bitcoin’s weekly chart which just printed a golden cross of the 50-week and 100-week SMAs. It was noted that the former was crossing above the latter. An analyst pointed out that, BTC surged by 75% in the four to five weeks that followed the cross, the last time this was seen.

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