While Bitcoin (BTC) has seen a parabolic rally since September, the momentum has stagnated, with BTC/USD unable to suspension through the best loftier region.

This BTC price level below $xx,000 has been accompanied past diminishing volatility and book, making it increasingly hard to predict the direction of the adjacent move. Let's have a expect at the crucial levels where volatility could be expected on the lower fourth dimension frames.

Sideways BTC price action, low volatility for now

BTC/USDT four-hour chart. Source: TradingView

The lower time frame charts show an apparent range-bound construction that has led the book and volatility to subside.

The established ranges are now $19,400 to $19,600 and $18,400 to $18,600. The $19,400–$19,600 range is the resistance zone, as the cost is having a difficult fourth dimension clearing this hurdle. On the other mitt, buyers are stepping in at the $eighteen,400–$18,600 area, which is serving as the lower bound of the current range.

Bulls can debate that there's a stable structure of higher highs in progress. At the same time, bears can argue that there are constant lower highs being established on the lower time frames.

Such arguments are the reason why traders are clashing about where the price is going in the short term. But what can be expected is heavy volatility once either of these levels is cleaved.

Potential bearish divergence on the daily time frame

BTC/USDT ane-day chart. Source: TradingView

The daily fourth dimension frame shows a possible bearish deviation, which would be confirmed once Bitcoin'due south toll drops below $18,500.

Moreover, if such a drib occurs, the 21-twenty-four hour period moving boilerplate (MA) will be lost every bit crucial support that has been intact throughout the electric current uptrend, as the chart shows.

More downside is probable if Bitcoin'south price drops below the 21-day MA, with $sixteen,000 every bit the next logical support zone. This is a significant daily area, which has already been tested in one case as support.

In fact, this expanse tin can become very significant in the coming months as BTC grinds its mode up to the best high. This is because such a motion would be very similar to the bull market cycle in 2016.

CME gap set to be filled at $17,000

BTC/USD four-60 minutes CME chart. Source: TradingView

The CME nautical chart shows a large futures gap, which is all the same set up to be filled. By and large, 95% of the CME gaps get filled, which raises the probability of price dropping back to these levels in the brusque term.

Traders and investors should be aware that such a correction might be correlated with a bounce in the dollar currency alphabetize (DXY). If this occurs, altcoins will likely show fifty-fifty more than weakness as the price of BTC corrects further.

The views and opinions expressed here are solely those of the author and do non necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.