Bitcoin has found itself ensnared within a constricting range throughout the month of August. The preeminent on-chain analyst at Glassnode, Checkmate, aptly brought attention to the fact that the span between the upper and lower Bollinger Bands for Bitcoin has narrowed to a mere 2.9%, marking its third-most constricted state in history. Ordinarily, phases characterized by diminished volatility are subsequently followed by an expansion in range.

The duration spent within this range profoundly influences the potency of the eventual breakout. Regrettably, the challenge lies in precisely timing the breakout with certainty. Consequently, traders must exercise vigilance, lest they forfeit the prospect of riding the forthcoming prevailing trend.

Bitcoin slipped below the 20-day EMA ($29,458) on Aug. 13, but the bears could not build upon this advantage and sink the price to the critical support at $28,585. This suggests a lack of aggressive selling at lower levels. The flattish 20-day EMA and the relative strength index (RSI) near the midpoint indicate a balance between buyers and sellers. This suggests that the BTC/ USDT pair could continue to consolidate inside the range between $28,585 and $30,350 for a while longer.

The next trending move is likely to begin after the price escapes this range. If the price turns down and plunges below the $28,585 support, it could start a descent to $26,000. Conversely, a rally above $30,350 could enhance the prospects of a rally to the overhead resistance zone between $31,500 and $32,400.

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