With so many variables at play, including macroeconomic conditions and worldwide regulatory changes, Bitcoin [BTC] has chosen to consolidate in recent days. During this time, the king coin dropped below $28,000.
It eventually retained its worth above the region, as it was at the time of publication. But will it maintain its recent breakout and leap to new highs, or will there be a retracement?
Traders appear to be divided in their forecasting of price activity. According to Material Indicators, a crypto market data company, there is substantial liquidity moving into the $29,000-$30,000 range.
This suggests that many traders anticipated the lowest price sellers would accept for BTC to be in the aforementioned range. Material Indicators, on the other hand, revealed bids decreasing toward $27,600. This meant that persons in this position expected the greatest possible purchase price to be inside the zone.
Surprisingly, according to Coinglass statistics, the spread between longs and shorts was extremely close. Despite the fact that shorts held the majority of open positions, the BTC long/short ratio was 1.01. This indicated that market players were somewhat bullish on the price. Yet, the closeness showed investors’ skepticism about long and short sales.
Michael van de Poppe, CEO of Eight Global and a Bitcoin trader, forecasted the BTC’s next stop. He believes that the coin’s price rising above $29,700 could be the spark for it to reach $30,000.
So it appears. StockMoneyLizards echoed this sentiment in a tweet on April 2nd. So what does the technical perspective think about these points of view?
BTC has been bouncing between support and resistance on the four-hour chart since April 1. As a result, traders may find it difficult to identify a specific pattern to follow.
Yet, with shrinking volatility as shown by the Bollinger Bands (BB), the price action may be easier to spot if it maintains the same level. Nonetheless, the BTC price appeared to be approaching the upper band. If it reaches this level, it will be an overbought indicator at $28,660.
And the price may end up leaving the $30,000 target for a future try. The Amazing Oscillator (AOmomentum )’s stayed below equilibrium at -212.02. This suggested the possibility of bearish momentum, putting sellers in command.
