Bitcoin ($BTC) remains under high resistance, and the price movement is still unable to overcome the main 20-Week EMA. According to a recent post by popular analyst Micheal van de Poppe, nothing actually changed in the case of Bitcoin since this cryptocurrency had to face a clearly defined resistance level once again.
The action at these zones indicates that sellers are in control and no significant bullish pressure is allowed.
Liquidity Zones in Play
The chart that van de Poppe provided shows some key liquidity areas of concern. The largest liquidity sweep was during the all-time high of Bitcoin and a sudden bounce back to resistance. The analyst noted that liquidity is willing to be used up, which means that price volatility around these levels is not yet finished.
Whether or not BTC retests some areas is a close focus by traders because these areas could determine the next directional movement.
Risk of a New Bitcoin Low
Van de Poppe says that until Bitcoin can regain its resistance points in the near future, the market might be moving towards a new low. Unless this is beginning to break through, I would forecast that we are hitting a new low, he said.
The range between the 103,000 to 100,000 are indicated as the possible point that buyers can intervene. In the event that the price action falls below the current support, this area would be a good long-entry point.
Implications for Altcoins
Interestingly, van de Poppe recommended that a new Bitcoin low would spark an opportune altcoin climate. He suggested traders think about going max long on altcoins when Bitcoin’s weakness persists. Historically, during times when Bitcoin consolidates or falls, liquidity tends to move to other cryptocurrencies, which provides excessive returns to the initial holders.
Outlook and Market Sentiment
There is cautiousness in the market, and traders are bracing themselves in the face of uncertainty. Although there are no bullish catalysts at present, technical configurations indicate that there will be a decisive movement in the future. Investors are divided in terms of whether the correction will continue or whether the market will break through resistance and bullish momentum will resume.
With the larger market waiting to see the next step of Bitcoin, the focus is on liquidity levels and the 20-Week EMA. Until, at least, the resistance has given way, and the risk of trying new lows is still on the table.
