Key Highlights :
1. BTC saw another failure to exit a tight trading range into April 6 as $28,000 again hung in the balance.
2. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading below the the $28,000 mark at the time of writing.
3. The pair had approached $29,000 the day prior, eating into ask liquidity in what analysis called a “choreographed” move by whales.
4. That appeared to be true, as upward momentum soon faded and spot price remained in an increasingly narrow range.
5. The cloud of liquidity around $30,000 thus remained untested, much to the frustration of those hoping for an easy continuation of the 2023 upside.
6. In follow-up commentary, monitoring resource Material Indicators noted that traders had moved bid and ask liquidity toward each other, “compressing” the likely zone of movement for the spot price.
7. “Liquidity dampens volatility,” it summarized.
8. Liquidity dampens volatility. #FireCharts shows both sides seem to be moving #BTC liquidity closer to the active trading zone, effectively compressing the range.
9. Gaps that don't get filled in or defended with buy/sell walls are prone to be exploited...and yes, that means both…
10. After such a strong start, trader and analyst Credible Crypto doubled down on his prediction that BTC/USD would set a new all-time high in 2023.
11. “A dip to 23-25k which I have been talking about for weeks doesn’t change any of that. It is nothing to be concerned about,“ part of a recent commentary stated.
Bitcoin prices have been on a roller coaster ride over the past few weeks, with a fresh BTC price charge on liquidity around $30,000 ending in a return to a familiar Bitcoin trading range.The volatility in the Bitcoin market is likely due to a number of factors, including the SEC’s decision to delay the decision on whether to approve the Winklevoss Bitcoin Trust ETF, the Chinese government’s crackdown on digital currency exchanges, and the recent hack of the Japanese cryptocurrency exchange Coincheck.While the volatility in the Bitcoin market is likely to continue for the near future, it is important to stay informed and understand the risks involved in trading Bitcoin.Here are a few tips to help you stay safe when trading Bitcoin:1. always do your research before investing in any cryptocurrency;2. be aware of the risks involved in trading Bitcoin; and3. stay informed about the latest news and events affecting the Bitcoin market.
