Some swift downmoves fail to make Bitcoin dislodge a familiar trading range, with one trader calling it “in limbo.”
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Bitcoin (BTC) saw fresh volatility on May 6 as low-liquidity weekend trading tested the mettle of its trading range.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD shedding over $1,000, or 3%, in a matter of hours on the day.
The largest cryptocurrency saw livelier conditions typical of weekend trading while remaining unable to exit a broader corridor in place for many weeks.
Amid a lack of ammuniation to either clear $30,000 resistance or drop toward key trend lines near $25,000, BTC/USD frustrated market participants.
“Bitcoin really is in limbo right now and doesn’t know what to do .. I am back out of a position and just waiting again for one side of this range to break to re enter,” popular trader Crypto Tony told Twitter followers.
An accompanying chart showed potential targets in the event of a bearish breakdown.
Additional analysis released earlier in the day meanwhile repeated existing predictions of $32,000 coming into play should bullish momentum return.
$BTC / $USD – Update
While the attention is all on #Memecoins i am not surprised that we are literally seeing a stagnated #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 dip before the breakout,” part of commentary argued, with a chart presenting BTC/USD in a narrowing wedge with a decision on exit trajectory due.
— CryptoBullet (@CryptoBullet1) May 6, 2023
As ever, longer timeframes were a cause for more optimistic views.
Related: Bitcoin trader eyes $63K BTC price for new Bollinger Bands ‘breakout’
Analyzing the weekly chart, analyst Gert van Lagen flagged the 200-week simple moving average (SMA) as the resistance line to clear next, with Bitcoin possibly completing an equally bullish inverse head and shoulders chart pattern.
Trader and investor CryptoAce meanwhile highlighted a large weekly resistance zone for bulls to tackle.
“Stay below and $24k is where price will be trading in some weeks imo,” part of an update on trading activity read on the day.
— Cryptoce (@CryptoAceBTC) May 6, 2023
Magazine: Unstablecoins: Depegging, bank runs and other risks loom
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
