Bitcoin (BTC) trading during September occurred in a range just below $1,500, which is its smallest, or tightest, 30-day trading range since July of 2017 according to CryptoCompare data.
On Sunday (September 30th), bitcoin closed the monthly trading period with a range of $1,329 as its price recorded a low of around $6,100 and a high of about $7,429.
The last time the flagship cryptocurrency recorded such a narrow trading range was in July, 2017 when it traded with a range of just under $1,100. In addition to being so tightly traded, monthly bitcoin trading volume in September was at its lowest since July 2017.
Bitcoin (BTC) September Candlestick
Bitcoin’s historical price movements indicate that after periods of relatively low volatility and low trading volume, the world’s most dominant cryptocurrency experiences large price changes – which have been in both positive and negative directions.
Notably, bitcoin trading closed its September candlestick (its opening trading price, the highest and lowest trading price for a given period, and closing price) well within its low and high range of the previous (August) month. As referred to by technical analysts, bitcoin price exhibited the “inside bar pattern” – which traders often consider a strong sign to either buy or sell the cryptocurrency, but only if it’s traded with a higher range than the preceding month.
Should bitcoin price fall below the $6,100 mark this month, it will likely lead to further (potentially large) drops in its price and it may then attempt to establish support or resistance at $4,900+, according to analysts.
“Breakdown Of Support”, Followed By “Sharp Impulse To Decline”
However, if bitcoin price exceeds its September high of nearly $7,430, then it could send bullish signals for large potential price increases in the long-term. Surpassing September’s high (in BTC price) may also trigger a bull market for cryptocurrencies.
According to CryptoGlobe’s (October 2nd) bitcoin price analysis, the cryptocurrency’s price may reach a high of $7,400 if the bulls push its price past the $6,800 mark. Also, should BTC price drop below the $6,400 support level, then it will likely return to the $5,900-$6,000 support zone.
As covered by CryptoGlobe (on September 1st), crypto market analysts had said that bitcoin price could drop below $3,000 as it had been trading within a tight range of $5,500 to $8,500 since the last 3 months (now 4). As explained by forex analyst Alexander Kuptsikevich, such a narrow trading price range may result in a “breakdown of support” – leading to a “sharp impulse to decline.”
