Bitcoin Stabilizes at $66,000 as Traders Eye Key Flip to Support Level
Summary:
Bitcoin's price held steady around $66,000 on April 23, defined by a fresh trading range. Despite achieving a higher valuation than the previous week, BTC saw two gaps in Bitcoin futures that acted as short-term price targets. Trader Marco Johanning suggested a key level of $66,700 BTC should aim to flip as its support, outlining two potential scenarios based on market reactions. The liquidity in exchange order books continues to be tied to spot price, with significant support and resistance levels being identified. In the background, the potential for a more substantial BTC price movement looms, connected to changes in Bollinger Bands patterns.
On April 23, Bitcoin (BTC) remained close to the $66,000 mark, as price movements continued to be suppressed by sell orders. Information from Cointelegraph Markets Pro and TradingView illustrated the formation of a fresh trading range since the weekly closure. Despite being valued higher than the preceding week, BTC/USD left bulls uninspired, even a rally to $67,200 overnight failed to close a CME Group Bitcoin futures gap nearby.
Mirrorring this condition is another gap downward at $64,400; both of these present near-term targets for BTC price but have not yet been met. Marco Johanning, a well-known trader, used the current market conditions to set $66,700 as Bitcoin's crucial "flip to support" level. Johanning proposed two alternatives based on market response to the $66,700 benchmark.
First, if this level is turned, Bitcoin would lean towards the previous trendline and range peak. Secondly, should there be a rejection at $66,700, Bitcoin could recede back to midrange, perhaps even dipping below to close the CME gap. In both scenarios, the short-term trend continues, inclined towards the range peak.
Johanning's statement also highlights the ongoing liquidity condition in exchange order books, presenting closely packed bids and asks around the spot price. Exchange monitoring tool, CoinGlass, affirmed that the day saw significant support and resistance levels at $66,000 and $67,350 respectively.
Simultaneously, expectations for a more significant BTC price shift continue to loom. Trader and analyst, Matthew Hyland pointed to Bollinger Bands behavior changes on three-day timeframes, suggesting a potential range breakout could occur soon. The current Bands width, a key volatility index, resembles mid-February's tightness when BTC/USD was trading under $50,000.
Cointelegraph's prior report pointed out the implications of Bollinger Bands on BTC price movement, predicting an upward "squeeze," which eventually materialized. Remember to do your own thorough research before deciding on any trading or investment actions, as they contain inherent risks.
Published At
4/23/2024 10:52:32 AM
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