Bitcoin continues its sluggish trend as its price remains within range limits. An extreme drop in volatility signals a bullish signal, but a bearish knockout may not be eliminated. A solid base was formed as the price stayed within the trading range for a considerable period of time. This could lead to a large bullish breakout and a tendency for a pre-halving to occur, which could also be disrupted soon.
Current trading suggests that the price is under excessive pressure on both sides, or that both bulls and bears have become passive. So, without their heavy intervention, prices might have stayed at the same level. Moreover, at current price levels, millions of BTC have been accumulated across millions of addresses, so more accumulations have been witnessed at these levels.
According to data from Intotheblock shared by analysts, AliMore than 3 million addresses purchased nearly 1.5 million BTC between $41,800 and $43,080.
These levels have become one of the strongest areas of support for the Bitcoin price at the moment and this could be the reason why the BTC price triggers a healthy bounce every time it tests it. On the other hand, the price failed to rise above $43,800, the pivotal resistance that must be broken to start a new uptrend. So, will BTC price break the resistance wall?
The chart above shows that the price is moving sideways with the Bollinger Bands running parallel to each other. Despite the decrease in trading volume, the slight rise in RSI flashes optimistic hopes for the cryptocurrency. The bands are trading at exact resistance and support levels. Therefore, a breakout of either range could validate the price action.
Current trading setups suggest that Bitcoin (BTC) price may hit temporary resistance and rise above $45,000, but may show weakness and return to the average level of the bands.