As price compression has become the main chart feature of the Easter weekend so far, expectations remain that Bitcoin (BTC) will go lower in the short term.
Derivatives traders don’t take risks
Data from TradingView showed BTC moving in a tight range on Saturday and Sunday with a ceiling of $40,700. BTC saw little movement as the holiday season began, with US equity markets allowing crypto to avoid correlation-based volatility from Good Friday.
Bitcoin is set for four days of ‘out of hours’ trading, as Monday was also a no-trading day. While this meant that stock correlation was less important, there were other forces at play ready to stir the sentiment. According to
crypto analyst William Suberg, while market liquidity has remained lower and standard on business days, some feared that any spikes could worsen as a result of thinner order books. Deribit Insights, the research arm of trading platform Deribit, analyzed derivatives movements over the weekend, marking liquidity as a factor that influences real-time investor decisions.
What’s next for Bitcoin?
Meanwhile, a slight zoom-out from popular trader and commentator Pentoshi provides a more cautious view. According to the analyst, the recovery of levels significantly beyond the current narrow trading range on the lower timeframes will be enough for further bullish sentiment on what may be next for BTC. Along with an explanatory graphic, Pentoshi summarizes the situation to his Twitter followers as follows:
Currently $44.5K is the top spot for bullish momentum. Initial resistance is found at $42,000. Below the bias is for redistribution and another leg down. Consider that buyers need to step in pretty quickly.
BTC caption chart / Source: Pentoshi/ Twitter 100 days to ‘Capitulation’ for Bitcoin?
Pentoshi, meanwhile, was not the only voice predicting long-term gains for Bitcoin, a narrative that gained momentum throughout 2022, but short-term pain as well. Meanwhile, Kevin Svenson, who is known on social media for his bullish sentiment on BTC, warned that when analyzing market movements, current chart behavior mimics the period just before Bitcoin’s bear market crash in late 2018.
Bitcoin is making higher lows in 2022, although this event has followed a long period of low bottoms throughout the year, but it doesn’t take long for the charts to turn and ‘capitulation’ enters. Kevin Svenson has this to say on the matter:
The difference between these high lows and the slump is significant right now. So I think it’s kind of silly to be blindly on one side and not think about anything else.
Kevin Svenson, Bitcoin (BTC), every block subsidy He adds that it followed a historical pattern that puts it at a macro low about 800 days after its halving and got there. As we have mentioned in the news of Kriptokoin.com, the last halving was on May 11, 2020, that is, 706 days ago.
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