The main challenge facing Bitcoin is evident: the narrow price range it has been operating in for some time. Bitcoin has been unable to settle into a clear trend, bouncing about the $60,000 and $70,000 regions on the daily chart. The 50% threshold on the Relative Strength Index (RSI) indicates that market momentum is in balance.
Everyone’s attention is focused on whether Bitcoin will sustain its support above $60,000 or if negative pressure will cause it to decline, maybe down to $52,000. Although such a decline is conceivable, economists believe that given the current state of the market, this is a less likely scenario.
On the other hand, a significant increase over the $70,000 resistance level would open the door for Bitcoin to reach all-time highs. But making such a change is not without its difficulties.
Bollinger Bands are tightening, suggesting a big move may be approaching. There are support levels at $60,436 that might serve as a launching pad for a recovery, with the $70,000 area serving as the main obstacle to overcome.
The trend for the upcoming weeks might be determined by a breakthrough on either side. Since there isn’t enough volatility or liquidity in the market to allow Bitcoin to take off, the market is now in a neutral position, and the so-called “crab market” may eventually emerge as a viable option.
Breaking out of its present range is currently the biggest difficulty facing the price of bitcoin. It remains to be seen what direction Bitcoin will go, with resistance located just above $70,000 and support located at about $60,000.
