Bitcoin (BTC) experienced fresh volatility on May 6 as low-liquidity weekend trading tested the mettle of its trading range. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD shedding over $1,000, or 3%, in a matter of hours on the day.
Despite the volatility, Bitcoin remained unable to exit a broader corridor in place for many weeks. Amid a lack of ammunition to either clear $30,000 resistance or drop towards key trend lines at $25,000, market participants were frustrated. Popular trader, Crypto Tony, tweeted that Bitcoin is “in limbo” and “doesn’t know what to do.” Tony’s tweet included a chart that showed potential targets in the event of a bearish breakdown.
The day’s losses were referred to as nothing special by fellow trader CryptoBullet. They claimed that it was just the final dip before the breakout, with BTC/USD in a narrowing wedge and a decision on exit trajectory due.
As ever, longer timeframes offered a cause for more optimistic views. On the weekly chart, analyst Gert van Lagen 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. Meanwhile, trader and investor CryptoAce highlighted a large weekly resistance zone for bulls to tackle.
Bitcoin’s recent volatility has generated much debate, with many traders and investors uncertain about its immediate future. However, analysts remain bullish over Bitcoin’s long-term prospects.
Additional analysis released earlier in the day confirmed existing predictions of $32,000 coming into the picture should bullish momentum return. However, the market participants continue to wait for one side of the range to break to re-enter. The uncertainty has caused some to exit their positions and wait for a clearer signal before entering the market again.
As always, every investment and trading move involves risk, and readers should conduct their research before making decisions.