Price Analysis

Bitcoin’s Steady Trade Set-Up Raises Concerns, Traders Prepare for Bullish & Bearish Scenario

After a minor rise in value, Bitcoin has again begun its previous pattern of being stuck around the gains. During the previous trading day, the bulls managed to defend the support at $70,000, due to which the prices have elevated to close to $72,000 at the moment. Although the BTC price has demonstrated a minor bullish move, market participants do not appear to be sure of the upcoming trend. Hence, they appear to be prepared for both bullish and bearish scenarios. 

The current trade setup suggests the price is facing extreme difficulty in surpassing one of the key resistance levels at $71,500. Previously, the bears successfully restricted the rally from clearing these levels, which led to a significant pullback below the key support at $65,000. This may give some room for suspicion, as the traders may be expecting a similar rejection, which may cause a nearly 8% to 10% drain. 

On the other hand, some of the traders still remain bullish on Bitcoin and hence expect a fine upswing beyond $72,500 during the next price action.

As per the data shared by a popular analyst, Daan Crypto Trades, liquidity on both sides of the current price levels has piled up. The above chart shows that the liquidity cluster has formed at around $70.500 and $72,500. It suggests that some are short while others are long on Bitcoin but with just a small margin. Therefore, it suggests that the Bitcoin price could continue to consolidate for an extended period.

Currently, the BTC price is stuck within an ascending parallel channel but within the bullish range. The bears have again been activated, as they are restricting the rally below the key resistance. Besides, the buying pressure has dropped to some extent, which may make it a tedious job to clear the resistance. Therefore, similar to the previous one, the Bitcoin (BTC) price is believed to face another bearish rejection, which could slash the prices below $68,000 in the coming days. 

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