Bitcoin barely holds $28,000 as bulls see fresh rejection at key resistance
Bitcoin (BTC) saw another failure to exit a tight trading range until April 6 when $28,000 again hung in the balance.
Analysis sees traders ‘compressing’ BTC price
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading below the $28,000 mark at the time of writing.
The pair had approached $29,000 the previous day, eating into liquidity in what the analyst called a “choreographed” move by whales.
That appeared to be true, as the upward momentum soon waned and the spot price remained in an increasingly narrow range.
The cloud of liquidity around $30,000 thus remained untested, much to the frustration of those hoping for an easy continuation of the 2023 upside.
In follow-up comments, monitoring resource material indicators noted that traders had moved both bid and sell liquidity against each other, “compressing” the likely spot price movement zone.
“Liquidity dampens volatility,” it summarized.
Liquidity dampens volatility. #FireCharts shows that both sides appear to be moving #BTC liquidity closer to the active trading zone, effectively compressing the range. Gaps that are not filled or defended with buy/sell walls are prone to being exploited… and yes, that means both… pic.twitter.com/3ZDrfJeaVh
— Material Indicators (@MI_Algos) 5 April 2023
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Considering what the result of the current price action can be in short time frames, the analysis resource Skew developed two outcomes.
It described BTC/USD as “crabbling” – moving sideways – with little room for manoeuvre.
$BTC 4H
Not much changed, still crawling in tight 4H rangePrice struggling to maintain above 1D area high; usually involves one of two outcomes:
1. Slip with EMA trend (compression before expansion) / keep 4H area low
2. bleeding towards 1D area low and breakdown occurs there. pic.twitter.com/rJ2dEE14O0
— Skew Δ (@52kskew) 6 April 2023
“Double top” applies to the strap
Zooming out, meanwhile, trader and analyst Rekt Capital saw a trip to $27,000 as a potential signal that a long-term “double top” formation is underway.
Related: Bitcoin Copies ‘Known’ Price Trend in 2023, Two More Calculations Show
“Recent BTC rejection from Double Top resistance means BTC can still drop from here to complete the second part of the formation,” he tweeted on the day together with an explanatory diagram.
“In general, double tops resemble an ‘M’ shape, so the second part of the pattern will form with a drop to ~$27K (blue).”
Others remained generally optimistic on Bitcoin’s path for the coming year.
After such a strong start, trader and analyst Credible Crypto doubled down on his prediction that BTC/USD would set a new all-time high in 2023.
“A drop to 23-25k that I’ve been talking about for weeks doesn’t change any of that. It’s nothing to worry about,” part of a recent comment tired.
Earlier, Cointelegraph reported calculations calling for another bullish double top for Bitcoin in 2025, potentially reaching a peak above $200,000.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
