Bitcoin (BTC) has been trading in a tight range for the past few days after a sharp drop and a major liquidation event that wiped more than $1 billion off the market.
However, cryptocurrency analyst Michaël van de Poppe says volatility may increase soon as several events will occur in the coming period.
Van de Poppe stated that August and September generally did not go well for BTC, but the October-December period was generally very good, and pointed to these months for increased volatility. He also said that an Ethereum ETF could potentially be approved during these months.
Van de Poppe has identified some key levels to watch for traders looking to capture volatility. He noted that the 200-week exponential moving average (EMA) is a crucial support level that should not be lost. According to the analyst, this level is currently at $25,650 on Bitstamp and $24,750 on Binance. If this level is maintained, it could mean a bottom at this level.
The analyst says that if the said level is lost, the final capitulation will be between $19,500-$21,500.
The analyst states that in shorter time frames and during the week, it is still possible to go below the 200-week EMA as long as it is not lost.
*Not investment advice.