Bitcoin (BTC) experienced renewed volatility on May 6 as illiquid trading over the weekend tested the mettle of its current trading range.
Bitcoin “in limbo” despite volatility
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair lost more than $1,000, or 3%, in a matter of hours.
The largest cryptocurrency experienced livelier conditions typical of weekend trading as it remained unable to break out of the current trading range that it has been in for many weeks.
Lacking the conviction to break out of the $30,000 resistance or drop towards key trend lines near $25,000, the BTC/USD pair frustrated market participants.
“Bitcoin is really in limbo right now and doesn’t know what to do… I’m back out of a position and just waiting again to the side of this range to break back in,” said popular trader, Crypto Tony, to his Twitter followers.
An accompanying chart showed possible targets in the event of a bearish breakout.
Meanwhile, other analysis released earlier in the day repeated existing predictions that the $32,000 level would come into play should bullish momentum return.
While the attention is all on #Memecoins i am not surprised that we are literally seeing a stagnant #Bitcoin
The fun will continue sooner or later as it always does, but for now we plan ahead. A move to the high $32,000 would be perfect pic.twitter.com/m9uI3RmDln
— Crypto Tony (@CryptoTony__) May 6, 2023
In separate coverage, fellow trader CryptoBullet described the day’s losses as “nothing special.”
“Final drop before breakout,” argued part of the commentary, with a chart showing BTC/USD in a narrowing wedge with an exit path decision pending.
Nothing special about the current dump, just (e) in the making
Final dip before the breakout https://t.co/pFw8HX8jNq pic.twitter.com/ko4Q0nlkwE
— CryptoBullet (@CryptoBullet1) May 6, 2023
BTC price must break $30,000 mark for bullish thesis
As always, the longer time frames led to more bullish sentiment.
Analyzing the weekly chart, analyst Gert van Lagen he pointed the 200-week simple moving average (SMA) as the resistance line to break next, with Bitcoin possibly completing a similarly bullish inverse head and shoulders chart pattern.
Trader and investor CryptoAce, for his part, highlighted a large weekly resistance zone that needs to be addressed.
“Stay below and $24,000 is where the price will trade in a few weeks, IMO,” read part of a trading activity update.
$BTC
Weekly resistance block $29.7k – $31.5k
Stay below and $24k is where price will be trading in some weeks imoLast week took short from $29.7k & covered $28k
Now looking to short above $29.5k till $31.5k for $24k https://t.co/uewwZLtMzc pic.twitter.com/BVtGahtLr7— Cryptoce (@CryptoAceBTC) May 6, 2023
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