Bitcoin Looks South After Price Squeeze Ends With Drop to $9.6K

View Bitcoin fell to $9,600 earlier today, marking a downside break of recent low-volatility consolidation represented by the narrowing of Bollinger bands.

Bitcoin's recent low-volatility price squeeze has ended with a downside break that may see the cryptocurrency drop to the August low of $9,320 in the short-term.

As a result, BTC's price volatility, as represented by the spread between the Bollinger bands, had dropped to the lowest level in over four months last week.

Bollinger bands are volatility indicators placed 2 standard deviations above and below the price's 20-day moving average.

Bitcoin fell by 3.38 percent on Monday - the biggest single-day loss since Aug. 29 as per Bitstamp data - and closed well below the lower Bollinger band, confirming a downside break of the low-volatility consolidation.

Prices hit a low of $9,600 earlier today and continue to trade below the lower Bollinger band, currently at $9,767.

The spread between the Bollinger bands had narrowed to $656 on Sept. 21, the lowest since May. That squeeze has ended with a price breakdown.

On the way lower, the cryptocurrency may find support at $9,388 - the lower edge of the three-month contracting triangle.

A triangle breakout, if confirmed, would imply a resumption of the rally from April's low near $4,000 and open the doors for a sustained break above key resistance at $12,000.

BTC defended support of Sept. 19's low of $9,600 earlier today.