Bitcoin barely holds $28K as bulls see new rejection at key resistance
Bitcoin (BTC) saw another failure to exit a tight trading range into April 6 as $28,000 again hung in the balance.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading below the the $28,000 mark at the time of writing.
The pair had approached $29,000 the day prior, eating into ask liquidity in what analysis called a “choreographed” move by whales.
That appeared to be true, as upward momentum soon faded and spot price remained in an increasingly narrow range.
The cloud of liquidity around $30,000 thus remained untested, much to the frustration of those hoping for an easy continuation of 2023 upside.
In follow-up commentary, monitoring resource Material Indicators noted that traders had moved both bid and ask liquidity toward each other, “compressing” the likely zone of movement for spot price.
“Liquidity dampens volatility,” it summarized.
Liquidity dampens volatility. #FireCharts shows both sides seem to be moving #BTC liquidity closer to the active trading zone, effectively compressing the range. Gaps that don't get filled in or defended with buy/sell walls are prone to be exploited...and yes, that means both… pic.twitter.com/3ZDrfJeaVh
Related: Crypto winter can take a toll on hodlers’ mental health
Considering what the result of current price action might be on short timeframes, analytics resource Skew devised two outcomes.
It described BTC/USD as “crabbing” — moving sideways — with little room for maneuver.
$BTC 4H Not much changed, still crabbing in tight 4H rangePrice struggling to sustain above 1D range high; usually implies one of two outcomes:1. Grind with EMA trend (compression before expansion) / hold 4H range low2. bleed towards 1D range low & breakdown occurs there. https://t.co/n76XG7Z6io
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