The market participants remained bewildered as the star crypto, Bitcoin, is not able to flash clear signals. The BTC price is stuck within a range for nearly a week and with less action, the traders appear to have made a move to new tokens, shifting their focus away from Bitcoin. On the other hand, the other cryptos in the top 10 like Ethereum, Binance Coin, XRP, etc have sustained above their threshold suggesting the markets may be outpowered by altcoins in a short while from now.
What’s next? How long will the BTC price maintain a range-bound consolidation?
Typically, an extended consolidation produces aggressive price action in the direction of the volume induced. Currently, buying volume appears to have increased, but it may not result in a healthy upswing because it is below the required levels. As a result, it appears that both bulls and bears expect the price to reach their respective targets of $42,300 or $43,500, at which point they may take action.
Having said that, Coinglass’s Bitcoin liquidation heat map shows liquidity on either side, indicating that traders are unsure of the next price action.
Bitcoin’s liquidity being built on both sides generally indicates the trade is being highly influenced at the moment. Higher probabilities of a wall being created on each side of Bitcoin surfaces by setting high sell and buy orders. With this, the BTC price remains highly stable and after they accumulate enough BTCs, these walls are broken by removing the orders, which may push the prices towards the north.
As the price has faced multiple rejections after rising above $43,600, a higher probability of another rejection surfaces. Besides, the crypto continues to consolidate within a reversal pattern, which suggests a long trade may hold good, suggesting a breakout. However, currently, it appears to be a ‘waiting game’ as the markets are believed to remain sluggish over the time ahead. It indicates a prolonged consolidation for the Bitcoin (BTC) price for another couple of days until it breaches the $44,000 resistance level.