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Bitcoin might suffer a weekend drop of $37.5K before a ‘greater move’ next week

Decentrader expects that minimal volatility will prevail in the following days, with Bitcoin set to present a more clear trajectory.

Bitcoin (BTC) is poised for a “greater move” as soon as next week, according to new research, as volatility approaches a breaking point.

In its most recent market report, trading suite Decentrader warned readers that the time has come to “pull the trigger” on liquidity as BTC price action rose or fell.

Analyst on BTC: “The bigger move is coming”

Throughout the week, Bitcoin has made lower highs and higher lows as volatility has ebbed due to a descending wedge on lower timeframes.

Such a position cannot persist indefinitely, and for Decentrader’s Filbfilb, it is only a matter of days.

“We continue to trade intraday, low timeframes, with an eye on legacy markets and general developments in Ukraine to ensure we have a foot in the market and are ready to pull the trigger in either direction when the time comes,” the update said.

The prognosis is similar to Filbfilb’s earlier March 18 notice to Telegram channel users, which predicts possibly lower levels over the weekend — particularly, a return below $40,000 toward support around $37,500.

“The greater move is coming… I believe we will see some action next week,” it says.

“Each of the last three weekends have seen Bitcoin find its way into the demand area, but pump weaker in the following week so I don’t think it’s unreasonable to expect something similar again this week… price currently being supported by the 50 DMA but we need to see weekly closes above that as i have mentioned previously.”

As previously said, Bitcoin’s 50-day moving average is currently hovering around $40,330 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.

b1 17

A macro image resembles a decades-old problem.

Concerns that a macro trigger could result in more serious pressure on Bitcoin, on the other hand, are not limited to trading circles.

As previously reported on March 17, there is a widespread belief that the coming mid-term range would be characterized by considerable volatility skewed to the negative.

Inflationary pressures, reactions to the continuing Ukraine-Russia crisis, and a growing desire to reduce reliance on the US dollar, euro, and other Western currencies would all contribute to this.

Analysts believe that Bitcoin, along with gold, could still come out on top in the long run, but the process will be difficult.

Filbfilb also suggested of the setup displaying its colors in the future.

“Price action is showing some strength for Bitcoin, alongside negative funding and general negative sentiment,” the update explains. “However, Fed rate hikes and planned tapering will continue to cause liquidity issues for Bitcoin, at least in the short term, which is yet to be recognized as the inflation-busting asset which it aspires to be.”

“This is something that is likely to take some time to play out, with less liquidity for big players and retail investors/traders facing a squeeze on their disposable income at the same time, something which hasn’t been seen in decades.”

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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