The bitcoin price since the crash is trending within these levels and hence these levels have become the new highs and lows
Traders tend to play within these levels and hence finding it difficult for the price to break the upper barrier
Bitcoin price had a phenomenal journey since the crash in 2020. The price rose beyond expectations and reach the highest levels above $64,000. However, the predictions for currency also rose beyond $100K until the black-Wednesday crash shrunk the price to a large extent. Despite some recovery and slight jumps, it still remained below $43,000 and hence initiated trending within newly formed highs and lows.
Since the crash, the narrow trend has feared a lot of retail investors and the whales to some extent. Moreover, the price movements suggest the whales might have remained silent and calm. And the current trend may be due to the FUD and FOMO haunting the retail traders. But what may be the reasons behind the Bitcoin narrow trend!
It is a known fact that the new low for the BTC price since the mid-may crash is $30K and the high is $43k that it achieved the same day. Further, there was a sentiment shift from bearish to bullish whenever the price gained a few percentages. The influencers called for higher levels as the price went up and predict too low during the bearish trend.
And hence the possibilities of the traders setting ‘stop loss’ at both of these levels are high. This may be to generate a lot of liquidity which is a high volume of activity in the market. It can also be interpreted that shorts might have placed a lot of stop losses around the lower highs. And hence the higher highs usually remain untouched.
The more concerning is how the traders usually fall within this trap as the price since the crash tends to reverse within the 10%-20% & 80%-90% area on both sides. And hence the traders often keep waiting for those sweeps which will never get achieved fully and miss out on extracting their profits.
Usually, in these circumstances, the traders keep on buying and selling at the wrong times or tend to hold their positions to expect more highs. And woefully, lose out the gained profits until they are in the loss again. It’s all because the price is not reaching the logical targets as assumed by most of them.
This is where most of the people are being destroyed trying to trade within these ranges. Panic selling while falling into FUD and FOMOing back in on way up. However, the timing may be wrong each time. And hence it is better to be careful to stick out to a plan and not getting caught up in these bitcoin price ranges.