BTC’s Price is Crushed by Traders
Bitcoin again failed to break out of a narrow trading range on April 6th, as the USD 28,000 level again hung in the balance.
According to information provided by Cointelegraph Markets Pro and TradingView, the BTC/USD pair was trading below USD 28,000. Yesterday, the pair had approached USD 29,000 reducing liquidity in what analysts called the whales “choreographed” move. That seemed to be true, as the upward momentum soon faded and the spot price remained in an increasingly narrow range.
The liquidity cloud of around USD 30,000 remained untested, much to the frustration of those hoping for an easy continuation of the 2023 rally.
In that sense, Material Indicators pointed out that traders had shifted buy and sell liquidity which causes a compressing effect in the prospective zone of spot price movement.
Liquidity Diminishes Volatility
On the other hand, FireCharts has shown that both sides appear to be moving BTC liquidity closer to the active trading zone, effectively compressing the range.
Bearing in mind, what the outcome of the current price action could be in short time frames, analysis resource Skew conceived two outcomes. He described the BTC/USD pair as a “crab”-moving sideways with little room to maneuver.
BTC has not changed much; it continues to move in a tight 4-hour range. Price struggles to stay above the 1-day range high and that usually implies one of two outcomes:
1. Follow the EMA trend / hold the 4-hour range low.
2. Bleed into the low of 1-day range and the breakout occurs there.
A “Double Top” Formation Could Be in Progress
In the interim, trader, and analyst Rekt Capital has recognized a drop to USD 27,000 as a potential signal that a long-term “double top” formation is underway.
BTC’s recent rejection of Double Top resistance means that BTC could still fall from here to complete the second part formation; he tweeted that day together with an explanatory chart. Typically, Double Tops resemble an “M” shape, so the second part of the pattern would form with a drop to ~ USD 27,000.
Others remained Optimistic about Bitcoin’s Path for this New Year
Bitcoin (BTC) price continues struggling and has overcome repeated falls that have led some analysts to project a long-term “double top” formation in the near period.
For some experts, Bitcoin has a medium-term horizon that can be situated around $1 million per token, so after such a strong start, trader and analyst Credible Crypto reaffirmed his prediction that the BTC/USD pair would reach a new all-time high in 2023; and it is expected to make at least half the journey, approaching half a million dollars per token by the end of 2025.
Will Bitcoin Exceed USD 30,000?
The chances will increase taking into account new data from JOLTS and the dollar weakness tendency.
Credible Crypto indicated that a drop to USD 23,000-25,000 does not change any of that. It’s nothing to worry about, read part of the recent commentary.
Earlier, Cointelegraph reported estimates pointing to another bullish double top for Bitcoin in 2025, potentially above USD 200,000.
By Marina Meza
