2020-3-5 03:32 |
The cryptocurrency market has been firmly range-bound for the past couple of days, which has been rooted in Bitcoin’s inability to garner any direction in the time following its recent break below $9,000.
As the benchmark cryptocurrency continues hovering around $8,700, analysts are now keeping their eyes on a few levels that are key for determining the state of its 2020 uptrend.
One prominent trader is now noting that there are two liquidity regions that he is closely watching, with its reaction to these regions potentially offering valuable insight into the future of the recent 2020 uptrend.
Bitcoin consolidates at $8,700 as bulls and bears reach an impasseAlthough Bitcoin and the aggregated crypto market remained in an unrelenting uptrend throughout all of January and most of February, it now appears that buyers and sellers have grown deadlocked.
This is elucidated while looking at the cryptocurrency’s bout of sideways trading within the upper-$8,000 region, as it has struggled to break above the strong resistance that exists below $9,000 but is being bolstered by the significant buying pressure that sits at roughly $8,400.
In the near-term, in order for Bitcoin to begin its next notable trend, it must first break above either the upper or lower boundary of this trading range. Until then, most analysts are staying neutral on BTC.
George, a popular trader on Twitter, is one such analyst that is currently neutral on BTC, telling his followers that he is staying sidelined until the crypto is able to post a clean break of one of its range’s boundaries.
“BTC: Something like this. If we don’t get the sweep and just dump through, I’ll get stopped and stay flat until we get a clean break below the WO, or a break back above mid-range. Let’s see.”
Image Courtesy of George Here are BTC’s two key liquidity pools to watch forThe upper and lower boundaries of this aforementioned trading range also seem to correlate closely to the two key liquidity regions that analysts are currently watching.
SalsaTekila, a highly respected cryptocurrency trader, spoke about the importance of these levels in a recent tweet, explaining that he isn’t willing to enter any swing trades until he sees how Bitcoin reacts to one of these levels.
“I got my eyes on those liquidity pools: 1) $8,969 double top. 2) $8,200 swing low. Not willing to swing trade BTC until one or the other hits.”
Image Courtesy of SalsaTekilaThe coming few hours and days will hopefully give investors insight into Bitcoin’s mid-term trend based on its reaction to these levels.
The post These two liquidity pools are critical for determining where Bitcoin trends next appeared first on CryptoSlate.
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