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