Bitcoin (BTC) bulls continue to struggle to break out of the narrow gap where the price is stuck. However, the hesitation among investors is forcing analysts to expect a major correction for Bitcoin price.
Bitcoin price forgets Fed amid liquidity expectations
Bitcoin price is stuck in a narrow range until May 20. Data from TradingView shows that it is currently hovering just above $27,000. A brief period of volatility emerged after Fed Chairman Jerome Powell made new comments on policy and the inflation outlook.
While Powell’s language left the door open to change when needed, it did not give clear signals to risk assets. Responding financial commentator The Kobeissi Letter warns that there are “tons of uncertainty” ahead.
SUMMARY OF POWELL SPEECH (5/19/23):
1. Inflation "far above 2% objective"
2. Committed to getting inflation to 2%
3. Unclear if rates are "sufficiently restrictive"
4. Failure to lower inflation prolongs pain
5. Will "take time" to lower inflation
Tons of uncertainty ahead.
— The Kobeissi Letter (@KobeissiLetter) May 19, 2023
Yet Bitcoin soon suspended Jerome Powell’s statements. It’s back to a range already familiar from the previous weekend. Another analyst, Skew, argues that a new volatility is only a matter of time.
“There is a very narrow illiquid gap between the post-Fed FED speakers on Friday. “We expect the market to find an EQ early next week where both the spot and perp market will be forced to set a trend,” he sums up.
$BTC LTF data
Growing variance between perp & spot market; which ive posted about previouslyVery tight illiquid range here between post friday FED speakers
Expecting market to find an EQ early next week in which both spot & perp market will be forced to establish a trend. pic.twitter.com/PzmBdWGSFQ
— Skew Δ (@52kskew) May 20, 2023
Crypto Tony predicts range will stay in place until new week
The crypto analyst says that a close above or below the levels he marked on the 4-hour chart he shared will create reason to reconsider the market. Crypto Tony predicts that the range will stay in place until the start of the new macro trading week.
I expect we will be in this range all weekend no doubt, bit we play the breakout if it does come today, tomorrow, next year …
Breakout plays are my favourite. We identify the range, set alerts and wait for the beast to break the cage ‼️ pic.twitter.com/1B7wB5uqCc
— Crypto Tony (@CryptoTony__) May 20, 2023
Warning of ‘big sell’ for bitcoin price
Others analysts expect short-term bearishness when it comes to BTC price performance. Popular analytics account IncomeSharks warned that a deeper correction is expected but should not occur for another week.
“Another week of outage is expected before the big sale,” part of the Twitter commentary the previous day said.
#Bitcoin – The red squiggles surprisingly accurate so far. Double rejection on the 4h supertrend. Expecting another week of chop before the big sell off. That's when I'll jump back in, when Twitter thinks we are going back to zero pic.twitter.com/hakZMRmdGU
— IncomeSharks (@IncomeSharks) May 19, 2023
Trading resource Stockmoney Lizards conceded, citing the “head and shoulders” pattern that has been discussed in trading circles in recent weeks, predicting a slump is imminent.
He said a correction could lead to $24,500.
Meanwhile, analyst Crypto Rover, with 500,000 followers, expects stiff volatility this weekend. The crypto analyst says that he may find new buyers from the wedge formation where the BTC price is advancing. As quoted by Kriptokoin.com, he predicted that the BTC price would stay above $27,000 over the weekend.
How is the Bitcoin price?
BTC maintained its current price range with almost no movement over the weekend. At the time of writing, it is trading in the region of $27,094.72, where it has remained stable on a daily and weekly basis.
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