The Bitcoin price has now entered somewhat calmer waters and is currently trading at around USD 27,700. It looks like the market will finally have some time this weekend to catch its breath and process all the macroeconomic spectacle of the past period. “It looks like Bitcoin is continuing to ping pong back and forth a bit around the CME close,” Zane Crypto Trades commented on Twitter.
Daan Crypto Trades expects a quiet weekend for Bitcoin and that will also be nice for most traders. After all, the past few weeks have been characterized by enormous volatility. With the reference to CME, the trader is referring to the CME Group Bitcoin futures market, which often has a significant effect on the price.
You often see that Bitcoin closes the “gap” that arises in the week after the futures close. At the time of writing, Bitcoin is hovering around CME’s closing price, so there seems to be no volatility from that angle for a while. In a subsequent publication, Daan Crypto Trades writes about the liquidity in the order books, which can also serve as support or resistance for the price.
“These charts of Bitcoin can look a bit messy at times, but it can be useful to find potential areas of liquidity to understand where most stop loss be positioned. Breaking those levels can produce a small wave movement in the direction of a next zone. We have already seen that on the way down,” he refers to the price action of the past few days.
Attack on the $30,000?
His fellow analyst Crypto Tony seems a bit more optimistic at the moment. He hopes that the bulls can gather some strength to possibly launch an attack on the $30,000 before Bitcoin begins a further correction to the downside. “One last push towards $30,000 on this declining volume please,” Crypto Tony asks those bulls in his update on Twitter.
Around USD 30,000, Crypto Tony also expects Bitcoin to take a hit again, because the bulls often fail to break through these types of zones in one go. The lower volume and the limited volatility that we are currently seeing mean that the number of liquidations is falling somewhat.
On March 25, approximately $5 million in short and long positions were liquidated. On March 22, things were very different, because on that date $ 120 million worth of positions were liquidated. So we’ve had a quiet weekend so far and most traders wouldn’t be surprised if it stays that way.