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No confirmation of a bearish orientation, the bulls will soon return to the $67,000 levels
Bitcoin price has kept investors on edge with no clear bull or bear market confirmation. As expected, price action over the weekend was relatively modest, with low volatility and slight bullish relief. There has been a lingering question about how we might be in a bull market if the price consolidated sideways for months, which is not generally seen as bullish.
Crypto World Analyst Josh provided a detailed analysis of the price action and said that the chart has not changed much in the last few days despite the short-term pullback. Currently, the Bollinger Bands indicator is still heavily compressed, indicating a contraction on the 4-day time frame.
This suggests that the Bollinger Band Width indicator is at very low levels, the lowest it has seen in a long time. Historically, this usually precedes a massive volatile movement in Bitcoin’s price, which is likely to occur soon. These volatile movements are typically 20-30% or even greater.
What is the current scenario?
For now, as long as the price holds above previous lows, which are around $60,000 based on the close of the candle (with the actual low around $56,000), Bitcoin can technically remain in a broader uptrend. However, this can happen during a broader uptrend.
If Bitcoin reverses a near-term decline, it should remain above at least $56,000. If it were to break down below that level, we could start talking about the end of the bull market. But for now, this has not been confirmed. We may be in for another massive sideways consolidation, which does not necessarily signal the end of the bull market.
What’s next?
Recently, Bitcoin retested a previous support area, which now serves as resistance between $67,000 and $68,000. A break below this level confirmed it as new resistance, aligning with the volume profile indicator, which shows a massive cluster of volumes trading between $67,000 and $68,000. The next major support group in terms of volume is between $63,000 and $64,000.
The Bitcoin liquidation heatmap shows significant liquidity between $64,600 and $65,000, with new liquidity rising between $67,300 and $67,400. This indicates that the price may revisit this resistance area before potentially seeing another rejection, considering the substantial resistance there.