Bitcoin (BTC) experienced fresh volatility on May 6 as low-liquidity weekend trading tested its trading range.
Bitcoin “in limbo” despite volatility
Data from Cointelegraph Markets Pro and TradingView demonstrated a drop of over $1,000, or 3%, on the day for BTC/USD.
While experiencing volatile conditions typical of weekend trading, the largest cryptocurrency could not exit a broader corridor in place for several weeks.
With no strong push to clear resistance at $30,000 or drop towards key trend lines near $25,000, BTC/USD frustrated market participants.
“Bitcoin really is in limbo right now and doesn’t know what to do .. I am back out of a position and just waiting again for one side of this range to break to re enter,” popular trader Crypto Tony stated to Twitter followers.
An accompanying chart showed potential targets in the event of a bearish breakdown.
Earlier in the day, additional analysis repeated previous predictions of $32,000 coming into play should bullish momentum return.
While the attention is all on #Memecoins i am not surprised that we are literally seeing a stagnated #Bitcoin
The fun will continue sooner or later as it always does, but for now we plan ahead. A move to the high $32,000 would be perfect pic.twitter.com/m9uI3RmDln
— Crypto Tony (@CryptoTony__) May 6, 2023
Fellow trader CryptoBullet described the day’s losses as “nothing special” in separate coverage.
Part of the commentary argued, “Final dip before the breakout,” with a chart presenting BTC/USD in a narrowing wedge with a decision on exit trajectory due.
Nothing special about the current dump, just (e) in the making
Final dip before the breakout pic.twitter.com/ko4Q0nlkwE
— CryptoBullet (@CryptoBullet1) May 6, 2023
BTC price bulls must clear $30,000
As always, longer timeframes were more optimistic.
Related: Bitcoin trader eyes $63K BTC price for new Bollinger Bands ‘breakout’
Analyzing the weekly chart, analyst Gert van Lagen flagged the 200-week simple moving average (SMA) as the resistance line to clear next, with Bitcoin possibly completing a bullish inverse head and shoulders chart pattern.
Trader and investor CryptoAce highlighted a large weekly resistance zone for bulls to tackle.
“Stay below and $24k is where price will be trading in some weeks imo,” part of an update on trading activity read on the day.
$BTC
Weekly resistance block $29.7k — $31.5k
Stay below and $24k is where price will be trading in some weeks imoLast week took short from $29.7k & covered $28k
Now looking to short above $29.5k till $31.5k for $24k pic.twitter.com/BVtGahtLr7— Cryptoce (@CryptoAceBTC) May 6, 2023
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
