The crypto market is currently witnessing a rollercoaster ride, and Bitcoin is leading the pack. Following an accord to elevate the U.S. debt ceiling, Bitcoin (BTC) ascended beyond the $28,000 mark. However, despite this rise, the cryptocurrency seems poised for its initial monthly decline since December. Currently, analysts and traders are expecting selling pressure in the BTC price chart as Bitcoin faces rejection near the much-anticipated resistance level at $28K.
Bitcoin Sparks Possibilities Of Increased Volatility
Glassnode, in its most recent blog post, portrays the Bitcoin market as balanced, with a likelihood of heightened volatility looming. The analysis indicates that the market is bracing for a surge in volatility.
With the deceleration of momentum in the Bitcoin market, the Monthly Realized Volatility has dipped to 34.1%, falling beneath the 1-standard deviation Bollinger Band. This period of subdued volatility, representing just 19.3% of the market’s history, hints at a potential spike in volatility in the near future.
Moreover, on-chain activities, encompassing transactions related to deposits and withdrawals from exchanges, have experienced a periodic downturn. The recent activity has seen a 27.3% decrease compared to the past half-year, suggesting a notably subdued level of investor engagement.
When examining Bitcoin’s short liquidation metric, a recent surge to $40 million was observed as Bitcoin managed to break through multiple resistance levels starting from $27K. This metric is crucial as it represents the value of short positions that have been forcibly closed due to sudden price increases, causing losses for those betting against the market.
This trend indicates that Bitcoin’s upward movement beyond the $27K mark is activating stop-loss orders for sellers.
This sentiment suggests that the recent price movement of Bitcoin has caught short sellers off guard, forcing them to exit their positions and potentially driving the price of Bitcoin even higher.
What To Expect From BTC Price Next?
The inability of bearish traders to pull the price beneath the immediate support level of $25,871 has sparked robust purchasing activity from the bulls. They managed to propel Bitcoin back into the symmetrical triangle pattern, although higher levels are drawing in sellers. As of writing, BTC price trades at $27.6K, declining over 0.04% in the last 24 hours.
Sellers are making efforts to halt the recovery at the triangle’s resistance line. However, if the bulls prevent the price from dropping below the 20-day EMA at $27,318, it could increase the likelihood of a breakthrough above the resistance line. If this occurs, the Bitcoin price might surge to $30,000, followed by a potential rise to $31,000.
On the downside, the first support level to monitor is the 20-day EMA. If this level is breached, it could indicate that bearish traders are selling during price rallies. Consequently, the pair could plummet to the crucial support zone that lies between $25,810 and $25,250.
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