Bitcoin showed some form of unpredictability it went against expectations or perceived trends at some point. Self-proclaimed crypto analyst Cheeky Crypto recently delved into these trends and expressed doubts about the future of Bitcoin.
In a recent YouTube Video, Cheeky Crypto highlights that Bitcoin’s recent shifted price formations from the technical patterns. At the start of the week, the market expected bearish action to unfold, first that Bitcoin would complete the five-wave decline to lower support near $57,700 to $58,200. Nevertheless, the BTC price woke the market from slumber with the breakout of this structure and trading above $60000 with a challenge to former resistance levels.
This has resulted to massive breakout and a new wave of thinking in the market regarding Bitcoin. Cheeky Crypto reported that the initial five-wave pattern was frustrated due to its shift in the expected market pattern to be a three-wave formation. The analyst observed that this movement could indicate a zigzag pattern but it is unclear and leaves the traders unsure of the direction of the market.
Bitcoin’s Liquidity Hunters
Market liquidity is another one of the factors affecting the prices of Bitcoin: the higher the level of market liquidity, the higher the price of BTC. Cheeky Crypto pointed out that the market is still far from liquid, meaning that there are ‘’liquidity hunters’’, who can manipulate the prices of digital assets in the direction of the desired liquidity.
The technical indicators also reveal a mixed picture. The stochastic RSI points to the fact that Bitcoin might revisited higher ground but this remains more of a possibility though not assured. Based on the volumes, it becomes apparent that there is a decline in the upward trends; also, this supports the unpredictable market. Despite the recent enhancement of the pound, there is not much trading activity, a clarion that the market is still fairly illiquid.
Cheeky Crypto also noted that there is resistance in the BTC/USD pair around the $61,000–$62,000 mark while levels around $60,000 are actually support. While the market operate at these levels, there is high possibility of volatility. These are indications that traders should keenly watch since more fluctuation may either consolidate the current gains or lead to more volatility.
The surge in Bitcoin in recent periods brought new speculations in the market with Cheeky Crypto advising that caution be exercised. As with liquidity, volatility is also expected to remain low and traders should expect fluctuations in the trader’s sentiment to be fast. The following days will be very defining whether Bitcoin will continue to make higher highs or if it would experience another round of decline.
