Breakout or retracement? Where does Bitcoin come from [BTC] head next

by James · April 4, 2023

Bitcoin traders are bidding on lower levels much more than those expecting a quick upward move
Volatility remains low as BTC struggles to find solid support

With so many factors at play, from macroeconomic conditions to global regulatory changes, Bitcoin [BTC] have chosen to stick with consolidation in recent days. During this period, the king coin managed to fall below $28,000.

At one point, it maintained its value over the region as it was at press time. But will it continue its recent breakout and rise to new heights, or is a setback on the horizon?

Read Bitcoins [BTC] Price prediction 2023-2024

If the shorts have it, then the longs…

Well, traders seem to be divided in their foresight with the price action. According to crypto market data provider Material Indicators, it asked for liquidity flowing into $29,000 to $30,000.

This means that a number of traders expected the lowest price sellers would accept for BTC to be around the aforementioned region.

Conversely, material indicators also showed that there were bids falling towards $27,600. This suggested that in this position they estimated that the highest purchase price was within the zone.

#FireCharts shows #BTC ask for liquidity from the $29k-$30k range descending into the active #trade area. Meanwhile, new bids seem to be trying to maintain support around $27.6,000 and hold the range for another attempt at $30,000.

We still have not confirmed outbreaks or… pic.twitter.com/b4enLIocKc

— Material Indicators (@MI_Algos) 3 April 2023

Interestingly, the spread between longs and shorts was extremely close according to data obtained from Coinglass. Although shorts had the most open positions, BTC was long/short ratio was 1.01.

This meant that the market participants were slightly bullish about the price. Nevertheless, the closeness reflected that investors were skeptical about long and short selling.

Michael van de Poppe, Bitcoin trader and CEO of Eight Global gave his projection of BTC next stop. According to him, the coin price pushing above $29,700 could be the catalyst to reach $30,000.

The low has blown on #Bitcoin.

Grinding back up, as long as $27,900 holds, I would expect continuation towards high range and potentially $30K. pic.twitter.com/dY89M95LLF

— Michaël van de Poppe (@CryptoMichNL) April 4, 2023

Are you stuck between the green and the red?

That’s how it looks. This feeling was also shared by StockMoneyLizards in an April 2nd chirping. But what does the technical outlook say about these views?

Realistic or not, here it is ETH’s market value in BTC’s terms

Based on the four-hour chart, BTC has been oscillating between support and resistance since April 1st. Therefore, this can make it challenging for traders to find a specific pattern to follow.

However, with contracting volatility as shown by Bollinger Bands (BB), the price action can be easily detected if it manages to maintain the same level. However, the BTC price seemed to be heading towards hitting the upper band. If it achieves this price level, it will be an overbought signal at $28,660.

And the price could end up leaving the $30,000 target to reach another attempt. On the momentum side, the Awesome Oscillator (AO) stayed below equilibrium at -212.02. This indicated possible bearish momentum, thus putting sellers in a control position.