Data from two different sources shows that the BTC/USD price is hovering around $28,000 on Bitstamp. There hasn’t been much movement in the market lately, with no clear indications of where prices are headed. This was due to a combination of large open interest, high sell wall levels and stretched buy pressure that left traders with little appetite for the risk of volatility.
BTC/USD had failed to break out of its recent range despite multiple attempts, while order book data continued to suggest sideways trending price action could remain in place. Trading volume across major exchanges appeared low as investors awaited further news from the U.S. Securities and Exchange Commission (SEC) on approval for Bitcoin exchange-traded funds (ETFs).
On the day, Binance was monitoring a liquidity issue on their order book. They warned people not to expect guarantees in cryptocurrency and suggested that they are among the riskiest assets. The seeming infatuation with meme coins and non-fungible tokens (NFTs) may have made some crypto investors complacent, however.
As the NFT market exploded in recent weeks — with sales of digital artworks fetching millions of dollars — many news outlets seized on the trend as evidence that tokenization was taking over markets. However, it’s important to remember that this is still a nascent industry, and the long-term prospects for these assets remain unclear.
Former Coinbase executive Balaji Srinivasan called for a sky-high $1 million per Bitcoin within the next three months, and material indicators said that liquidity reflects sentiment. Material Indicators emphasized that liquidity reflects sentiment and that such liquidity moves are apt to “dampen” price volatility. This was followed by an influx of bearish sentiment, with the crypto-focused analytics firm Glassnode noting that a sharp 5% drop in BTC’s realized price had been registered.
This pointed to Bitcoin miners selling off their coins more aggressively than usual, thereby reducing liquidity levels and possibly leading to yet further volatility. In addition, various reports suggested that whales were actively manipulating the market in order to bring prices down — most notably through large-scale sell orders on BitMEX.
Daan Crypto Trades, a popular trader and analyst, believes that there is a high likelihood of a breakout in the Bitcoin price due to increasing market dullness and low volatility. According to Bollinger bands volatility indicator, BTC/USD is experiencing some of its least volatile conditions of 2023, which is commonly observed before large price movements. Daan Crypto Trades believes that the price of Bitcoin could skyrocket within the next few weeks and investors should be ready in order to take full advantage.
He also advises traders to look for entry points on altcoins as they may have better risk/reward ratios than Bitcoin due to their higher volatility. Other technical indicators such as moving averages, RSI, and Stochastics are also showing bullish signs which hint at a potential uptrend in the near future.