Bitcoin could retest the lows of the current range as its price is trending lower. At the time of writing, BTC is trading at $ 32,513, down 3.3% on the daily chart. Many traders wonder if these levels hold as the bulls appear to lack confidence in the lower time frames.

BTC / USDT 4-hour chart | Source: TradingView

Analyst Josh Rager emphasize that Bitcoin has been moving sideways lately. With constant compression, the cryptocurrency was less volatile than in previous months, at least in the daily and weekly charts.

Rager sets $ 36,000 as a key price to help the market regain confidence. At the same time, the analyst expects $ 31,000 to be an important area of ​​support that could stave off further downside momentum.

Meanwhile, analyst Allen Au Note into a pattern, indicating that the price of BTC should rise after BTC’s 60-day volatility rises above V1 and falls back to V2 or below. This happened in the 2013 and 2017 growing seasons.

Source: Allen Au

He expects this phenomenon to repeat itself during this bull run. In 2013 and 2017, this upward trend brought Bitcoin to its previous all-time high and marked the end of the bull cycle of those years.

The Income Sharks analyst suppose i think, current market conditions favor the bears. Therefore, in order to continue the bull cycle, volume and volatility need to increase.

“For the second time, Bitcoin was rejected by Supertrend (4h frame). When the volume and volatility are low, it usually tends to the downside. High volume and volatility often favor the upside potential. “

Source: Income Sharks

Bitcoin, calm before the storm?

Many experts believe that Bitcoin creates the conditions for a large surge to its previous high or below its annual opening price. Glassnode Insights’ analyst Checkmate has noted an increase in activity in the spot and derivatives markets, as well as the on-chain indices.

Combined with the shift in the amount of BTC deposited on exchanges, the standard cryptocurrency could soon break out of its current range. In May, the amount of BTC held on the exchanges jumped higher as selling pressures mounted.

According to Glassnode’s net transfer volume from exchanges over the past two weeks, this trend could be reversed. During this period, there were more active outflows from the exchanges, with 2,000 BTC being withdrawn from the exchanges per day.

Source: Glassnode Insights

Additionally, Bitcoin-based derivatives have been relatively quiet after the sharp crash in May, Checkmate noted.

Since the May sell-off, open interest in futures contracts has remained pegged between $ 10.7 billion and $ 13 billion with only a handful of notable rallies or falls in the range. The open interest is still 57% below the ATH, which was set in April when Coinbase went public.

Source: Glassnode Insights

In addition, the trading volume on the derivatives market is falling. Hence, Bitcoin could have more room for recovery as low leverage has less of an impact on the market. Experts are still divided on the future price development of Bitcoin, but they agree that a big move is on the horizon.

SN_Nour

According to Newsbtc

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