Bitcoin is at a critical phase, consolidating below key supply levels and above crucial demand as the market anticipates its next big move. The price has remained in a tight range for the past week, creating mixed sentiment among investors and analysts alike. While some are cautious due to recent volatility, others believe that Bitcoin is gearing up for a strong bullish trend. The divided sentiment suggests that the next move will likely be aggressive, potentially setting the tone for the coming weeks.
Top analyst Axel Adler shared key metrics revealing that the Bitcoin net volume of Taker orders has shrunk to a minimum. This indicates reduced activity from traders looking to drive the price aggressively in either direction. Such conditions often precede significant price movements, as low Taker volumes suggest that both bulls and bears are waiting for a decisive breakout.
The current consolidation phase is seen as a pivotal moment for Bitcoin. A breakout above key supply levels could trigger a rally toward new highs, while a breakdown could lead to a retest of crucial demand zones. As the market watches closely, all eyes are on Bitcoin to see which direction it will take in the coming days.
Bitcoin Traders Stop Shorting
Bitcoin is trading in a consolidation range between $94K and $98K as it prepares for its next significant move. Analysts and investors speculate on the next direction, with short-term price action remaining uncertain. The entire market is closely monitoring Bitcoin’s performance, as it appears poised to once again take the lead in driving this cycle’s momentum.
Axel Adler shared insights on X, revealing that the net volume of Taker orders has shrunk to a minimum. This indicates a notable lack of aggressive traders trying to push the price either up or down. Adler pointed out that there are hardly any traders actively shorting Bitcoin, similar to the situation observed in early February, which preceded a strong price move. Furthermore, the Funding Rate has remained consistently positive over the past week, signaling a shift in sentiment and a bias toward long positions.
The current consolidation phase is seen as a pivotal moment for Bitcoin. A decisive move above the $98K level could pave the way for a test of the $100K mark and potentially higher supply zones. Conversely, a breakdown below the $94K support level might lead to a retest of lower demand zones around $90K.
The next week will be crucial for determining Bitcoin’s short-term direction. As volatility continues to dominate the market and speculative interest builds, all eyes are on Bitcoin to see whether it will break out to the upside or face further bearish pressure. Whichever direction it takes, the move is expected to be aggressive, setting the tone for the crypto market’s trajectory in the coming weeks.
Technical Levels To Watch
Bitcoin is trading at $97,700 after tagging the 4-hour 200 EMA at $98,800, a level that currently acts as a key supply zone. Bulls are striving to reclaim the $98K level and push above the psychological $100K mark in the coming days. A successful break and consolidation above these levels would signal renewed momentum and the start of a potential uptrend. The $100K mark is critical for short-term sentiment, as reclaiming it as support could pave the way for price discovery and a test of higher levels.
However, downside risks remain significant. If Bitcoin fails to hold above the $94K level, it could lead to a correction toward lower demand zones around $90K or even below $89K, levels not seen in months. This would add to the uncertainty and volatility that has dominated the market in recent weeks.
With momentum building and traders closely monitoring the $98K and $100K levels, the coming days are crucial for Bitcoin. A decisive move in either direction will likely set the tone for the next phase of price action, determining whether BTC can continue its bullish trajectory or if further bearish pressure will dominate the market.
Featured image from Dall-E, chart from TradingView