Is Bitcoin Preparing to Flash Crash Or Soar To $73,800?

Bitcoin bulls expect prices to spike in the next few days. However, looking at the performance in the daily chart, the path of least resistance in the short-term is southwards. Sellers are still resilient, capping gains.

The dynamic support line and $66,000 on the lower end provide immediate support. Unless gains sharply spike above $70,000 by the end of the day, the odds of BTC slipping below immediate buying zones remain elevated.

The sideways movement in price action is shown in the performance on the last day and week. Bitcoin is stable, up roughly 1% in the previous week. Due to the large inactivity, the average trading volume is below average, at just $22 billion at press time. Unless there is a sharp spike in prices above resistance (preferably), engagement will remain lower.

Bitcoin traders are closely keeping tabs on the following news developments:

• Even as BTC bulls keep sellers at bay, there has been a sharp decrease in exchange reserves. At press time, trackers show that it is at a 5-year low with notable outflows from Binance, the world’s largest exchange by trading volume.
• Though prices are stuck in a sideways range, macro events, especially in the United States, could catalyze the next wave higher. Recently, the Treasury Secretary Janet Yellen said the Federal Reserve raised the interest rate forecast, making keeping deficits low a challenge.

Bitcoin Price Analysis

As mentioned earlier, sellers are in control in the short term, even with the bounce earlier today.

Conservative traders can stay on the sidelines unless there is a sharp surge above $72,000 or below $66,000.

Aggressive and upbeat traders, on the other hand, may continue loading dips above $66,000, targeting $72,000 in the short term.

Meanwhile, if there is a price dump below $66,000 and the 20-day moving average today, the uptrend forecast will be nullified.