Bitcoin (BTC) circled $67,000 on Sunday as traders warned of hidden BTC price weakness.
Key points:
-
Bitcoin Bollinger Bands demand a volatile BTC price breakout after a slow weekend.
-
A trader predicts a move lower thanks to weak support and exposed downside wicks.
-
Sideways price action comes as sellers step up into the end of the week.
Bitcoin trader waits for sweep of sub-$60,000 lows
Data from TradingView showed volatility cooling over the weekend, with BTC/USD acting within an increasingly narrow range.
On four-hour time frames, the Bollinger Bands volatility indicator constricted — a classic signal that a sharp move up or down was due.
BTC/USD four-hour chart with Bollinger Bands. Source: Cointelegraph/TradingView
In their latest analysis, pseudonymous trader LP bet on bears winning the battle.
“Looking back at previous cycles, bottoms were formed after multiple sweeps of the lows, forcing capitulation before a reversal,” a post on X read.
BTC price comparison. Source: LP/X
LP said that sweeping local lows, including February’s wick below $60,000, was “likely just a matter of time.”
“When that breakdown eventually happens, watch the behavior closely. If price starts repeatedly sweeping the lows, making it psychologically difficult to enter longs, that’s when a true bottom is more likely forming,” they concluded.
Whales “buying dips and selling rips” on BTC
Continuing, Keith Alan, cofounder of trading resource Material Indicators, flagged unusual selling activity despite flat BTC price action.
Related: Bitcoin 'done' with 85% crashes, says Cathie Wood amid new $34K target
Uploading a chart of Binance order-book liquidity and volume by investor class, Alan highlighted a bot using time-weighted average price (TWAP) to distribute BTC on Friday.
“The vertical orange line represents the smallest order class with a TWAP bot selling $18M in an hour,” he explained.
Binance BTC/USDT order-book activity. Source: Keith Alan/X
Whales, Alan added, were “buying dips and selling rips” with Bitcoin still trapped in a range.
Earlier, Cointelegraph reported on further threats to Bitcoin bulls, including resurgent US dollar strength.
This article is produced in accordance with Cointelegraph's Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research before making any decisions. Cointelegraph makes no guarantees regarding the accuracy or completeness of the information presented, including forward-looking statements, and will not be liable for any loss or damage arising from reliance on this content.
- #Bitcoin
- #Bitcoin Price
- #Markets
- #Market Analysis
