Over the weekend, Bitcoin (BTC) experienced fresh volatility in trading as low-liquidity testing put its trading range to the test. According to data from Cointelegraph Markets Pro and TradingView, BTC/USD lost over $1,000, or 3%, in just a matter of hours on May 6. While it saw more active conditions typical of weekend trading, it was still unable to exit a wider corridor holding for several weeks. With little ammunition to clear the $30,000 resistance or drop towards key trend lines near $25,000, BTC/USD has frustrated market participants.
Analysts Remain Optimistic
Popular trader Crypto Tony informed his Twitter followers that “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.” An accompanying chart showed potential targets in the event of a bearish breakdown. However, in separate coverage, fellow trader CryptoBullet described the losses experienced during the day as “nothing special.” Part of the commentary argued that this was the “final dip before the breakout,” with a chart presenting BTC/USD in a narrowing wedge with a decision on exit trajectory expected.
Despite this, analysts remain optimistic about Bitcoin’s future. Gert van Lagen analyzed the weekly chart and flagged the 200-week simple moving average (SMA) as the resistance line to clear next, with Bitcoin possibly completing an equally bullish inverse head and shoulders chart pattern. On the other hand, trader and investor CryptoAce highlighted a large weekly resistance zone for bulls to tackle, stating that “stay below and $24k is where price will be trading in some weeks imo.”
In conclusion, while Bitcoin’s weekend trading has tested its trading range, analysts remain optimistic about its future potential.