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- Bitcoin exhibits volatility, with mixed indicators suggesting both potential upside and caution.
- The daily low has a 37% chance of being breached, while the daily high has a 98% chance of being surpassed.
- Open interest rises by 2.70%, while trading volume drops 24.13%, signaling cautious market behavior.
Bitcoin is hovering in uncertainty, and there are conflicting signs being produced in the market. Analyst Praevisio highlighted that there is potential upside in some indicators, but other indicators also point to caution. The price of Bitcoin is volatile, which makes it unpredictable to traders. With the weekend approaching, the analysts are closely monitoring whether or not Bitcoin will see any clear direction in its derivatives market.
The price of Bitcoin ranges at the moment, with liquidity accumulating at both ends of the range. There is a close observation of the price behaviour of analysts over the next few hours. The daily high had an 8% chance of sustaining. Further volatility is imminent since it has already surpassed it. Praevisio is neutral in its orientation but anticipates a possible bullish drive, particularly during the London session.
Source: X
Bitcoin’s Potential Price Movement
Analysts are evaluating future directions of Bitcoin as the probabilities of key levels being breached are high. The daily low is at 37% probability of being taken out, but on the other hand, it has 98% probability of being taken out at the daily high. The bias is neutral, and the market is still testing support and resistance critical levels. During this period of uncertainty, analysts are awaiting a clearer market trend to emerge.
When it comes to distance, the probability of Bitcoin overtaking the daily low is 41 times more likely, yet the chances of additional displacement are 100, indicating a possibility of further movement. The neutral stance is being taken by analysts, as they are waiting to see more signs to make market forecasts.
Bitcoin has three scenarios concerning its price action. The first scenario implies a failure to connect to the existing highs of the range, which will push Bitcoin to the weekly low. The second one is that Bitcoin may be supported by a critical 4-hour order block, which may drive Bitcoin prices up. The third one is the extension of the upward tendency.
Nonetheless, the probability of a decrease exists, where the price of Bitcoin may drop to the low of the month at $95,000. As of press time, BTC is trading at $106,004, with a 0.99% increase in the past 24 hours and a 1.01% increase in the past 7 days.
Open Interest Increases
The open interest in Bitcoin futures rose by 2.70% to 71.74 billion, indicating exponential market growth. In the meantime, the trading volume of Bitcoin has declined by 24.13% to achieve a level of $59.46 billion. This implies that the market is cautious and traders are holding back in anticipation of more clarity.
Source: CoinGlass
BTC has an unclear direction as the weekend approaches. The market is trending in indecision as open interest is increasing, but volume is dropping. Traders have to remain vigilant because the next big move in Bitcoin could occur at any time.
