The crypto markets have again begun to consolidate, with the Bitcoin price remaining stuck within a narrow range. The bulls and bears both appear to be extremely inactive, due to which the levels are failing to rise or drop from their respective resistance or support levels. This has raised huge concerns across the markets but at the same time, some look at it as an opportunity to accumulate as the BTC price is about to experience huge volatility.
Earlier, a notable amount of liquidity was seen scaling on either side of $43,000, which indicated that the market participants were unclear on the next move. Hence, they are preparing for both the bullish and bearish possibilities. In a new update, the cluster has appeared around $44,000 and it is expected that the token may soon reach these levels.
The data shared by a well-known analyst, anonymously known as Cryptoinsightuk, shows the formation of a large liquidity pool is building just above the range. Therefore, the BTC price is expected to soon attack the range, which may act as a magnet for price. Volatility may rise as a result of the large number of traders placing stop losses on short positions. However, liquidating the short positions may further trigger a fresh upswing, which may be a bullish signal for the BTC price.
The Bitcoin price is currently trading within a narrow parallel channel. With the ATR or average true range, which is a volatility indicator plunging towards lower support, more squeeze in the levels may be expected. Moreover, other technicals like DMI, RSI, MACD, etc. are flashing acute bearish signals, which suggests the Bitcoin (BTC) price may face some hindrance at the moment, but a steep upswing could be imminent.
