While Bitcoin hardly clings to $28,000, bulls expect rejection from the resistance level
Bitcoin (BTC) has once again failed to break out of a tight trading range until April 6, with $28,000 still in balance.
Analysis sees traders ‘squeezing’ BTC price
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was trading below the $28,000 mark at the time of writing.
The pair had approached $29,000 the previous day and eaten up liquidity demand, which analysis called a «choreographed» move by whales.
This appeared to be true as the upward momentum soon faded and the spot price remained in a narrowing range.
Thus, the liquidity cloud of around $30,000 remained untested, disappointing those who hoped for an easy continuation of 2023’s upward trajectory.
In its follow-up comment, monitoring resource Material Indicators noted that traders are moving both buy and sell liquidity towards each other, «squeezing» the possible range of action for the spot price.
“Liquidity reduces volatility,” he summed up.
Liquidity dampens volatility. #FireCharts shows both sides seem to be moving #BTC liquidity closer to the active trading zone, effectively compressing the range. Gaps that don’t get filled in or defended with buy/sell walls are prone to be exploited…and yes, that means both… pic.twitter.com/3ZDrfJeaVh
— Material Indicators (@MI_Algos) April 5, 2023
Liquidity reduces volatility.
FireCharts show that both sides are bringing BTC liquidity closer to the active trading zone, effectively compressing the range. Gaps that aren’t filled or defended by buy/sell walls are prone to use…and yes, that means both…
Considering what the outcome of current price action might be in short time frames, analytics resource Skew devised two outcomes.
He described BTC/USD as «crabbing» with little room for maneuver.
$BTC 4H
Not much changed, still crabbing in tight 4H rangePrice struggling to sustain above 1D range high; usually implies one of two outcomes:
1. Grind with EMA trend (compression before expansion) / hold 4H range low
2. bleed towards 1D range low & breakdown occurs there. https://t.co/n76XG7Z6io pic.twitter.com/rJ2dEE14O0
— Skew Δ (@52kskew) April 6, 2023
‘Double ball’ concerns remained
Meanwhile, trader and analyst Rekt Capital made a trip to $27,000 as a potential signal that a long-term «double top» formation is underway.
“BTC’s recent rejection of the Double Top resistance means that BTC can still drop from here to complete the second part of the pattern,” he said. tweet threw.
«Overall, Double Tops look like an «M» shape and therefore the second part of the pattern will form with a drop to $27,000 (blue).»
Others remained generally optimistic about Bitcoin’s path in the coming year.
After such a strong start, trader and analyst Credible Crypto reiterated its prediction that BTC/USD will hit an all-time high in 2023.
In part of your last comment «The drop to the 23-25,000 levels I’ve been talking about for weeks doesn’t change any of that. It’s nothing to worry about,» he said.
Earlier, Cointelegraph reported on calculations calling for another bullish double peak for Bitcoin in 2025, potentially hitting over $200,000.
The views, opinions, and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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Bitcoin (BTC) has failed to break out of a tight trading range, with $28,000 remaining a key level of support. The cryptocurrency approached $29,000 but failed to maintain upward momentum and is now trading below $28,000. Traders are said to be «squeezing» the price range of BTC by moving buy and sell liquidity closer to each other, reducing volatility. Analysts are split on the outcome of current price action, with some remaining generally optimistic about Bitcoin’s path in the coming year, while others express concerns about a potential long-term «double top» formation.
