Two Critical Levels Squeeze BTC, Volatility Is Imminent: Analysis

Two critical levels squeeze BTC with the price action being lackluster ever since it saw a sharp decline to new lows of $28,000 a few days ago. The selling pressure sent the coin down to new lows but the bulls were struggling to extend the momentum which sparked this movement initially so let’s read more in today’s Bitcoin news.

Where the entire market trends in the mid-term could depend on whether or not BTC is able to sustain the rebound seen in the time following the movement. One trader noted that the entire market will be in a good position for a massive movement in the near-term. He explained that two critical levels squeeze BTC which could have some strong influence over its near-term. BTC’s price action feels void of momentum recently with the investors focusing their attention on ETH and other altcoins.

This comes as BTC stays within the lower $30,000 region with the bulls having a hard time perpetuating the momentum which helped it send the price skyrocketing from lows of $28,000 to new highs of $33,000 that were set last night. One analyst noted that BTC hovering between two levels which could mean that it will be a matter of time before the cryptocurrency sees massive movement. At the time of writing, BTC was trading down under 1% with a price of $31,900 which marks a notable decline from a recent high of $33,000 which was set overnight. The resistance was strong and caused the price to slide lower with no clear support until $30K.

If the cryptocurrency is able to gain momentum in the short-term, it will invalidate the weakness and will confirm the V-shaped recovery which the bulls are waiting for. Another analyst explained in a tweet that BTC will be getting ready for a strong movement soon and said that it is now trading between its 21 and 200-day EMAs which could mean a huge movement is imminent:

 “Bitcoin getting squeezed between the cloud. Specifically between the 21 and 200ema – big move will follow.”

The upcoming few days will shine a light on whether this imminent move will favor the bulls or bears and the close will be telling the near-term outlook of BTC.