Some rapid declines failed to lift bitcoin out of a familiar trading range, with one trader calling it “in limbo.”


stock goes down

There was further volatility on May 6 as the low-liquidity weekend trade tested the mettle of its trading range.

BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
Bitcoin ‘in limbo’ despite volatility
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD down more than $1,000, or 3%, within hours of the day.

The largest cryptocurrency saw typical weekend trading volatility, but failed to break out of a broader channel for weeks.

BTC/USD is frustrating market participants as it lacks the ammunition to clear the $30,000 resistance or decline towards the key trendline near $25,000.

“Bitcoin is really in limbo right now, I don’t know what to do… I exited the position, waiting to break out again to part of the range to re-enter,” popular Crypto trader Tony said on Twitter Followed by.

The accompanying chart shows potential targets in a bear scenario.

BTC/USD Annotated Chart. Source: Crypto Tony/Twitter
Another analysis published earlier in the day reiterated earlier predictions that $32,000 would come into play if bullish momentum returns.

Claim your Wallet ID and enable/disable cryptos effortlessly. Get ready, come on, XGo!
In another report, trader CryptoBullet described the day’s losses as “nothing special.”

“The last drop before the breakout,” noted some comments, with charts showing BTC/USD in a narrowing wedge and deciding to exit the trajectory.

BTC price bulls need to clear $30,000
As always, longer time frames lead to a more optimistic view.

Related: Bitcoin Trader Sees New Bollinger Band ‘Breakout’ for BTC at $63,000

While analyzing the weekly chart, analyst Gert van Lagen flagged the 200-week simple moving average (SMA) as the next resistance line to clear, with Bitcoin possibly completing a bullish reversal pattern.

BTC/USD Annotated Chart. Source: Gert van Lagen/Twitter
Trader and investor CryptoAce has highlighted a large area of weekly resistance that the bulls have to contend with.

“Stay below $24k imo trading price in a few weeks,” read part of an update on trading activity that day.

Review: Volatile Currencies: Depegging, Bank Runs, and Other Risks Loom

This article does not contain advice or investment advice. Every investment and transaction involves risk, and readers should do their own research when making a decision.

Source: CoinTelegraph