After a sudden pullback a few days ago, Bitcoin seems to have briefly regained its upside momentum, rising from about $93,300 to $96,300. Despite the slight rebound, BTC’s price is still trending within a key range that is likely to determine its next trajectory in the short term.
Sideways Price Action Persists For Bitcoin
IC News, a crypto informative platform has delved into Bitcoin’s recent price action, revealing a crucial development. After investigating price performances, the platform outlined that the asset is trending within a relatively narrow range.
With important support and resistance levels influencing Bitcoin’s next course, this phase of sideways movement may precede a noteworthy breakout in either direction. A breakout on the upside might put BTC on a path to reclaim $100,000 and beyond, while a break below could bring the $92,000 support level into focus.
According to IC News, BTC was trading at the $96,540 level at the time of the post, continuing its cautious upward trajectory. This represents a slight gain of about 0.25% over the past day and an increase of 1.75% over the past 7 days.
In spite of recent market fluctuations, Bitcoin’s 24-hour price range of $93,388 to $96,695 keeps the flagship asset inside a relatively narrow range. Its persistent movements within the range signal the ongoing consolidation in the market.
Leading financial and on-chain data platform Glassnode has also addressed Bitcoin’s movements inside a comparatively small range. Glassnode highlighted that the asset is trading between the $93,000 and $97,000 price zone, which signals a period of consolidation as the broader market cools down.
The tight price action comes after recent volatility in the market as bulls and bears fight for control over the market. Presently, Glassnode noted that derivatives activity is declining, and market capital inflows are becoming weaker.
Furthermore, short-term holders’ accumulation patterns are mirroring past patterns, particularly in May 2021. Should a similar result unfold, Bitcoin’s price could rebound toward key resistance levels or even a new all-time high in the upcoming months as seen in 2021.
BTC’s Price To See Further Downward Pressure?
Even though BTC saw a slight upward move, a key indicator suggests that the asset might be poised for more price decline. Glassnode co-founder and analyst, Negentropic revealed the development after several rebound attempts by BTC, with each rebound weaker than the last.
According to the expert, Bitcoin’s weak bounce from $93,500 to $95,000 highlights a lack of spot volume for a stronger move. Meanwhile, the Risk Index, a key metric for navigating price trends is showing early warning indications of downward pressure.
As long as the $97,000 and $98,500 levels are not recovered yet, Negentropic claims that the $92,000 mark is still the crucial area to watch on the downside.
Featured image from iStock, chart from Tradingview.com
