Bitcoin is on the cusp of a critical phase in its price movement, according to analysis on Crypto Banter’s The Sniper Trading Show. The analyst has warned of an upcoming “shakeout” phase following a period of sideways capitulation, which is expected to bring increased volatility and price fluctuations to the market.
During a price dump, such as the recent pullback in Bitcoin’s price, there is typically an initial spike in trading volume as traders react to the sudden movement. This heightened activity is a result of traders either looking to capitalize on lower prices or exit their positions. However, as the market settles into a sideways trend, trading volume tends to taper off, signaling a lack of buying pressure.
As trading volume decreases, it indicates a potential lack of interest in buying at current price levels. This can lead to a shakeout, where traders who entered positions may be forced to liquidate their holdings due to losses. Traders with leveraged positions can face liquidation during a shakeout, driven by fear and desperation. This process helps to remove weak hands from the market and can set the stage for a more significant rebound.
In terms of buy zones and expected movements, the current analysis suggests that Bitcoin has entered a crucial buy zone around $66,000. The analyst anticipates a major bounce in the next 24 to 48 hours, which could push Bitcoin above $70,500. Key support levels to watch for include $64,200 to $65,000, which could act as a buffer during downturns. Expectations for price action include a bounce back towards higher levels, leading to further price exploration. Traders should keep an eye on increasing volume and the emergence of new higher highs and higher lows.
Overall, Bitcoin’s price movement is entering a critical phase with potential for increased volatility and price fluctuations. Traders should pay close attention to key support levels, buy zones, and expected movements to navigate the market effectively.