Bitcoin Stuck Up in a Range-Top Reasons Why BTC Price May Suffer a Pullback
The volatility of the markets has become a matter of deep concern as they have depleted to a large extent. The acute drop in the market depth has led to a notable slippage in the BTC price, due to which massive price swings have been registered off-let.
The recent shutdown of Silvergate’s SEN and Signature’s Signet network has triggered a notable liquidity crunch. Despite this, the BTC price has comfortably rebounded from the interim lows.
Bitcoin, recently rose close to $29,000 reaching $28,900, but the fresh drop in the prices has negatively impacted the traders. The markets are bound to face acute crises due to a lack of liquidity which further causes insufficiencies.
Therefore, larger chances of the token continuing a consolidation phase for an extended period emerge.
The BTC price is constantly failing to reach $30,000 over a long time which suggests the consolidation phase may prevail for a long.
Therefore, the market volatility may decrease heavily while the prices are believed to remain highly stable. This may allow the token to stew for a while before igniting the next price action.
The Bitcoin price has now formed a bearish diamond pattern that often occurs at or near market tops which signals the reversal of an uptrend.
The shape looks like a diamond, tilted on one side where the prices make higher peaks and lower valleys. The pattern carries both the possibilities of a bullish breakout and a bearish breakdown depending on the current trend setup.
The price is approaching the apex of the diamond while a breakout may lead the price to climb above $29,000 and finally reach $30,000. However, the current trend suggests the possibilities of a bearish trend as the liquidity has eased to a large extent.
Hence a significant price drain may drag the price close to its interim support at $27,2000 and if it fails to hold, the bottom at $26,600 may also be tested.