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According to a momentum indicator used by analysts, Bitcoin price could see further declines in the short term as its bullish market momentum ends. Bollinger Bands, a technical analysis tool, use price volatility to indicate potential entry and exit opportunities in the trading area. Investors primarily aim to buy near the lower band and sell near the upper band using this indicator.
Analysts Highlight Key Observations
Investors predict that increasing daily volatility in the price range positions the Bitcoin price for further downward movement. Crypto analyst Aqua said in a post dated April 17 to his 16,500 followers:
“The Bollinger Band squeeze is gradually releasing, all you need is just below support and therefore we could see an expansion up to $50,000 in Bitcoin price.”
Stockmoney Lizards, in a series of posts published on April 17, predicted that the correction would continue despite the upcoming Bitcoin halving event on April 20. However, they assured that the market’s long-term upward momentum is maintained, sharing:
“No, the bull market is not over. I’m just taking a break. This is not a problem just after an upward movement.”
Meanwhile, technical analyst Tony Severino suggests that if the market cycle resembles that of 2017, Bitcoin price could undergo significant volatility. He shared:
“If this cycle is like 2017, the worst-case scenario based on the Bollinger Band would be $53,000.”
Futures Market and Bitcoin
On the same day, crypto investor Rekt Capital explained in a post on X that Bitcoin needs to maintain current support levels to avoid falling to and matching the lowest levels of the March 2023 18% pullback.
Trading source Material Indicators revealed that buyer-side support is forming strongly about 5% below Bitcoin’s current price of $64,242, sharing:
“Fire Charts show that support based on bid liquidity formed between $59,000 and $61,000, and secondary support dropped to $50,000.”
Blockchain data analysis platform CoinGlass reports that if Bitcoin’s price drops to the lower end of this range at $59,000, approximately $2.2 billion in long positions will be liquidated. Moreover, significant amounts of short positions will be wiped out before Bitcoin’s price can minimally move, with a mere 1.15% increase to $65,000 resulting in the liquidation of $551 million in short positions.
