Bitcoin Faces Serious Price Compression – What Happened Last Time
Bitcoin has experienced tiring price action in recent weeks, and price efforts have made good efforts for a clear short-term direction. As BTC is still in trouble, investors are beginning to feel impatient without a decisive breakthrough. When the market is hit by negative news, the price is testing critical supply between $98,000 and $10,000, which adds uncertainty.
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On Friday, cryptocurrency exchange bybit suffered a huge hack and ETH was stolen $1.4 billion. The event sparked fear among traders, causing increased volatility in the cryptocurrency market. However, Bybit responded quickly, trying to secure investors and prevent further market panic.
As Bitcoin still has scopeprice compression becomes extreme, indicating that major moves may happen soon. Top analyst Big Cheds analyzed the analysis of X, showing that Bitcoin is facing the most stressful Daily Bollinger (BBS) since its price of $295,000 since August 2023. Historically, such a low volatility phase has led to explosive price movements, which makes BTC’s next move crucial.
Bitcoin price action signal is about to break through
Bitcoin has struggled with $100,000 since late January and the Bulls are unable to confirm the recovery of the rally despite multiple attempts. Meanwhile, the Bears failed to raise BTC below key demand levels, keeping the price above $90,000. The ongoing battle between supply and demand creates uncertain short-term prospects, leaving the market waiting for the catalyst to determine the next move.
The lack of directional clarity has led to Bitcoin consolidation within a tight range, which marks an imminent breakthrough. Big Cheds’ insights on X Revealing Bitcoin’s daily daily Bollinger (BBS) since August 2023, when BTC was trading at $295,000. BTC last saw this level of price compression, and the market experienced a positive price drop before the long-term accumulation phase leading to recovery.
With BTC now rolling up another breakthrough, traders are cautious about the direction of this move. If BTC recovers $100,000, it could explode into an explosive rally of price discovery. However, a breakdown below $94K – $90K may trigger deeper corrections, which makes the next few days crucial to the market.
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If there are any historical signs, periods of low volatility are unlikely to last longer. The market is preparing for major actions, and traders are closely watching key resistance and support levels to confirm. As Bitcoin is supplied at historically low levels of exchange, long-term holders show resilience, a breakthrough of more than $100,000 could trigger new buying pressure.
BTC struggles after Friday’s turmoil
After a highly volatile Friday, Bitcoin was trading at $96,000, and after news from Bybit Hack, the price surged to $99,500 before falling to $94,800. This sudden price action is unstable as BTC fails to stay above critical supply levels and undergoes a rapid sell-off.
Now, the Bulls have to defend the $95K level throughout the weekend to prevent further downsides. Keeping this level will indicate strength and allow BTC to push towards $98K resistors, a critical area that needs to be recycled in breakthrough attempts over $100,000.
However, losing the $95K mark could trigger a breakdown of lower demand levels, potentially retesting the $94,000 or even $90,000 zone. Market sentiment remains divergent as BTC shows signs of compression, which often leads to positive action in either direction.
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For now, everyone’s eyes are focused on whether Bitcoin can recoup $98K and maintain momentum, or whether the bear will push the price to a deeper correction. The weekend may be crucial to identifying the next major trend, as BTC is still trapped in the $94,000 to $100,000 range, with an increase in volatility.
Featured images from DALL-E, charts from TradingView
