Bitcoin has been locked in a range-bound market for about a month. The token is hovering slightly above $18,500. There is not a single sign that bitcoin will exit the trading range soon. As the trend line has been passed, it is cannot be considered valid anymore. Crypto investors neither sell bitcoin nor buy it, though a lot of experts define the current levels as bargain prices. Apparently, both crypto traders and investors don't share this viewpoint because they are in no hurry to buy the token. In turn, if they don't rush to buy the crypto, they foresee even lower levels. To what extent can BTC fall? Most traders expect it to plunge as low as $12,426.
To be honest, a lot of traders and investors have been talking about the steady bitcoin over the last couple of years. Indeed, it has been even too steady. Analysts used to highlight BTC's instability and high volatility as its faults. For the time being, a lot of crypto wallets have been drained lately because a lot of traders bought the token at the final stage of the bullish trend at high prices. However, the bullish came to an end which was replaced by the downtrend. The bearish trend means that most market participants sell assets, not buy them. For a few recent months, market participants are wondering whether the world actually needs this digital asset. What if the crypto trades really steadily without intraday price swings of $5-10,000? The essence of such highly volatile assets is that BTC owners use it as a means of almost instant gains, but not as a payment means.
It goes without saying that BTC is really convenient to make online payments or transactions with minor commissions compared to banking services and at almost lightning speed. The question is whether it has become the mainstream payment means for international transactions. Is it a realistic scenario that a lot of people will convert fiat money into cryptocurrency to make a transaction or pay online for merchandise or services?
I reckon that low volatility might play a cruel trick on bitcoin. In case the flagship crypto calms down its crazy volatility, a crowd of retail investors will exit the market forever, searching for new investment opportunities.
According to the 24-hour timeframe, bitcoin has not been able to surpass the level of $18,500 or the 127.2% Fibonacci level for a few months. Therefore, bitcoin has been trapped in a trading range indefinitely. Analysts are trying to puzzle out how long it will trade sideways. I would recommend staying away from the market for a while. It would be better to wait until the BTC price leaves the trading range and then develop a trading plan for appropriate positions. Once the level of $18,500 is surpassed, the door will be open towards $12,426.