What’s in Store for the Bitcoin (BTC) Price This Week-Will it Surge or Plunge Hard?
The price of bitcoin continues to fluctuate within the lower band that it established during the recent sell-off triggered by Silvergate, a bank that supported cryptos. The price was believed to trigger a rebound, aiming to soar back toward the previous levels. However, the trend currently appears to maintain a steep descending trend as the technicals continue to be bearish for an extended period.
The price appears to have become less volatile after the recent drop as it fails to secure levels beyond $22.500. Mainly, the volume has dropped heavily, which is hindering the rally from proceeding toward its lost levels beyond $23,000. Mainly, the Bollinger Bands are squeezing significantly, which indicates the price could undergo extreme price action very soon.
In the 4hr chart, the Bollinger Bands appear to spark a fresh trend depending on the volume induced, which is more likely in favor of the bears. The RSI is crawling along the lower support and possesses the possibility of plunging below the lower support. In such a case, the price may also drop below $22,000 and test the lower support in the coming days.
However, the platform’s liquidity is draining, and hence the progress of the rally may be lowered, impacting the price. However, the ongoing descending trend may be a little different than the previous one, as the traders remain bullish for Bitcoin despite the current sideways trend.
The balance on the exchanges has depleted heavily since the beginning of 2023, which is the lowest level since 2018. With this, it is evident that the traders continue to hold their reserves in their wallets instead of relying on the exchanges. The recent rounds of exchanges utilizing user funds without their knowledge could have compelled the market participants to remain away from the exchanges.
Therefore, a small sign of rebound continues to hover despite the prevailing trend but the bearish clouds may depart only when the bulls intensify their action by regaining dominance over the rally.