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Bitcoin price has been keeping the investors on edge with no clear confirmation of the bull or bear market. As expected, the price action over the weekend was relatively tame, with low volatility and a slight bullish relief. There has been a lingering question about how we could be in a bull market if the price has been consolidating sideways for months, which isn’t typically seen as bullish.
Analyst Josh of Crypto World gave a detailed analysis of the price trend and said that the chart hasn’t changed much over the last few days despite the short-term pullback. Currently, the Bollinger Bands indicator is still massively squeezing together, indicating contraction on the 4-day time frame.
This suggests that the Bollinger Bands width indicator is at very low levels, the lowest seen in a long time. Historically, this usually precedes a massive volatile move in Bitcoin’s price, likely occurring soon. These volatile moves are typically 20-30% or even larger.
What’s the current scenario?
For now, as long as the price holds above the previous lows, which are around $60,000 based on candle closes (with the actual wick low at about $56,000), Bitcoin can technically remain in a larger bull market trend. However, this can happen during a larger bullish trend.
If Bitcoin retraces lower in the short term, it needs to hold above at least $56,000. If it breaks below that level, we might start talking about the end of the bull market. But as of now, this hasn’t been confirmed. We could be within another massive sideways consolidation, which doesn’t necessarily signal the end of the bull market.
What’s next?
Recently, Bitcoin retested a previous area of support, now acting as resistance around $67,000 to $68,000. A break below this level confirmed it as new resistance, aligning with the volume profile indicator, which shows a massive cluster of traded volume around $67,000 to $68,000. The next major cluster of volume support is around $63,000 to $64,000.
The Bitcoin liquidation heat map shows significant liquidity around $64,600 to $65,000, with new liquidity building to the upside around $67,300 to $67,400. This indicates that the price might revisit this resistance area before potentially seeing another rejection, considering the substantial resistance there.
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