Bitcoin has closed a volatile week in which the price of the largest virtual currency reached $18,200 twice. Despite markets falling on Friday, Bitcoin was able to keep its price stable above $19,000. If volatility continues, we could see Bitcoin falling below $18,000 or going above $20,000 in hours.
Cryptocurrencies, especially Bitcoin, had a volatile week. The price of the largest virtual currency fell to $18,230 in a fast and sharp move at the beginning of the week, which pushed other digital assets lower as well.
Nevertheless, this move lasted just a few hours, as the next day the market recovered as fast as it fell. However, we see that Bitcoin found strong resistance above $19,500, making it difficult for BTC and the whole market to get closer to $20,000. Indeed, the maximum price for Bitcoin this week was close to $19,955 on the Binance exchange.
Nevertheless, when Bitcoin surged to $19,955 the market fastly reacted and moved downwards once again. In a matter of hours, the coin fell below $18,200 for a short period of time. As you can see in the image below, the market fluctuated between $19,450 and $18,400. This range has been key this week as the market didn’t find a clear direction on where to move.
This price range has been very important for Bitcoin traders that found these support and resistance levels in order to trade this range. The main question is related to what can happen in the coming months. It is also possible to see that there might be a larger drop in the price of Bitcoin if things get worse for Europe and with the geopolitical situation.
The European Union is struggling to deal with the energy crisis as winter gets closer. Despite the fact that winter is some months away, some countries are already getting ready to face this season with large reductions in energy consumption, especially when it comes to heating.
High inflation rates, interest rates that are moving higher (the European Central Bank is planning to raise them in the coming months), and energy prices are skyrocketing. This explosive combination could definitely affect traditional financial markets and the crypto industry as well.
On Friday, the markets were moving lower but they closed at the end with a move higher. This could also be seen in Bitcoin and other virtual currencies that tend to follow traditional markets. It will be important to see how the next week will evolve and which things could affect the price of Bitcoin and other digital currencies.
At the time of writing this article, Bitcoin is being traded at $19,000 and it has a market capitalization of $363 billion. In the last few hours, BTC was traded quite stable and without much volatility, according to data provided by CoinGecko. This is something normal considering that during the weekend Bitcoin volatility tends to fall.