With prices fluctuating between $27,500 and $28,000, Bitcoin (BTC) is still in consolidation mode. The $27,000 level has provided the cryptocurrency with strong support even though it has been unable to overcome its greatest resistance wall.
Even though the $27,000 support level has given bullish traders hope for a new attempt to reach the $30,000 level, the possibility of a retrace to find bullish momentum and strength to breach the higher high resistance still looms.
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A Matter of Time before Bitcoin Sweeps the Lower Levels?
Bitcoin might experience a decline and test the $27,000 level, the previously established support of $25,200, or even lower. Despite these brief fluctuations, the outlook for the cryptocurrency is still bullish.
The 50-day moving average (MA) is in line with the $25,000 support area. This offers a sizeable barrier to stop further drops and might act as a reversal point for Bitcoin to hit new highs.
However, crypto analyst Justin Bennett thinks that regardless of whether Bitcoin makes another push toward $30,000 in the near future, it will eventually test the $20,000 price level. Bennett argues that this is just a fact of Bitcoin’s high volatility.
The graph above demonstrates that there is currently a sizeable amount of liquidity available below the $20,000 threshold, more specifically within the range of $18,000 to $19,500. Although if the price retraces to those levels, this liquidity could fuel Bitcoin, it also poses a risk to the cryptocurrency.
BTC at a Critical Moment
According to crypto analysis firm Material Indicator, Bitcoin’s current price range is marked by a “ladder” of ask liquidity, descending from the $29,000 to $30,000 range to the active trading range. This indicates intense selling pressure at the top end of the range, which is preventing Bitcoin from breaking through the $30,000 resistance level.
On the other hand, Material Indicators have noted fresh bids popping up around the $27,600 mark, indicating support to keep the current range and make an additional attempt to reach $30,000. This suggests that despite the present range-bound price movements, there is still a bullish attitude in the market.
Bitcoin has made three unsuccessful attempts to pass the higher high resistance level, according to the Material Indicators analyst team. In spite of these efforts, there hasn’t been a confirmed breakout or breakdown from the current price range. Price movements within the range are choppy as a result of price rejection at various points.
Overall, the emergence of new bids at this price suggests that some investors are prepared to purchase Bitcoin at this price, which can help to provide support and possibly drive the price higher, which will confirm the new trend of Bitcoin and further confidence in BTC.
With a loss of 0.3% over the past 24 hours and 0.2% over the past week, Bitcoin is currently trading at $28,100, close to being neutral.
Source: NewsBTC
