Bitcoin (BTC) is set for a “bigger move” as soon as next week, fresh analysis says as volatility faces a breakout situation.
In its latest market update, trading suite Decentrader told readers that the time would soon come to “pull the trigger” with liquidity as BTC price action goes up or down.
Analyst on BTC: "The bigger move is coming"
Bitcoin has been making lower highs and higher lows throughout this week as a descending wedge on lower timeframes sees volatility ebb.
Such a situation cannot last forever, and for Decentrader’s Filbfilb, it has a matter of days left to run.
“We continue to trade intra day, low timeframes, with an eye on legacy markets and general developments in Ukraine to ensure we have a foot in the market and are ready to pull the trigger in either direction when the time comes, which is fast approaching and somewhat unclear as to the outcome at the moment due to the current environment but look forward to a more sustained move,” the update summarized.
The assessment mimics that of Filbfilb’s note to Telegram channel subscribers earlier on March 18, which nonetheless foresees potential lower levels over the weekend — specifically, a return below $40,000 toward support around $37,500.
“The bigger move is coming... next week, I would think we will see some action,” it reads.
“Each of the last three weekends have seen Bitcoin find its way into the demand area, but pump weaker in the following week so I don't think it's unreasonable to expect something similar again this week... price currently being supported by the 50 DMA but we need to see weekly closes above that as I have mentioned previously.”
Macro picture mimics decades-old conundrum
Concerns that a macro trigger could spell more significant pressure for Bitcoin meanwhile are by no means confined to trading circles.
This would come thanks to inflationary pressures, reactions to the ongoing Ukraine-Russia conflict and a growing desire to exit reliance on the U.S. dollar, euro and other Western currencies.
Further out, analysts argue, Bitcoin could still come out on top alongside gold, but the process will likely be painful.
Filbfilb likewise hinted at the setup showing its colors going forward.
“Price action is showing some strength for Bitcoin, alongside negative funding and general negative sentiment, however, rate rises by the Fed and planned tapering will continue to cause liquidity issues for Bitcoin, at least in the short term, which is yet to be recognized as the inflation-busting asset which it aspires to be,” the update explains.
“This is something that is likely to take some time to play out, with less liquidity for big players and retail investors/traders facing a squeeze on their disposable income at the same time, something which hasn’t been seen in decades.”