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Bitcoin (BTC/USD) traders are eager for the cryptocurrency to make its next move after consolidating around the $28,000 level since the start of March. The price of BTC/USD surged above $28K at the height of the US banking crisis that saw several crypto-friendly banks collapse.
Ever since the cryptocurrency has been stuck in an ever-decreasing trading range about the $28K level, making market participants eye a potentially explosive move in the coming days.
BTC trading range narrows
Bitcoin price surged above $28,000 on March 19 and has since tried to maintain above that level through an oscillation that has seen it go to as high as $28,967 and to as low as $26,760.
However, the range has been decreasing since the beginning of April, giving traders hopes that there could be an explosive move and hopefully a bullish move.
Analysts have pointed out $25,000 and $30,000 as the near-term targets on either side of price movement. However, an increasing order book liquidity on either side of the BTC spot price seems to offer the market little room to manoeuvre.
Monitoring resource Material Indicators captured the Bitcoin liquidity phenomenon on the Binance order book and adopted a cautionary tone stating:
Material Indicators went ahead to give a specific warning focused on the recent BTC bet by former Coinbase executive Balaji Srinivasan that bitcoin could hit $1 million in the next three months. They also added that liquidity reflects sentiment after previously emphasizing that such liquidity moves point to “dampen” price volatility.
At the beginning of the weekend, Michaël van de Poppe, founder and CEO of trading firm Eight, shared a post on Twitter stating that:
“Very calm weekend coming up on #Bitcoin. Price action remained flat and the longer we stay in this range, the heavier the impulse will be. Based on the fact that we’re coming from $15K, I’d assume we’ll be seeing strong continuation. For now, support at $27,600 is sustaining.”
Imminent bitcoin breakout
Popular trader and analyst Daan Crypto Trades also shared a post on Twitter pointing out that a Bitcoin breakout is guaranteed. Daan Crypto Trades stated:
“Market is boring, volatility is low. These kind of periods usually precede a large move.”
Normally, an overstretched market consolidation is followed by a breakout and for the case of Bitcoin, it a breakout towards $30,000 would be possible following the last price movements and the largest macroeconomics although a possible bearish breakout towards $25,000 should also not be assumed.
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