Although Bitcoin is a potential breakout, its direction still remains unclear

Important points

• Bitcoin is still trading in the same 18-day range, despite its recent drop below $116,000

• The traders are feeling nervous because of the latency in implementing crypto-friendly policies from US regulators, including Trump’s administration.

BitcoinBTCAfter the FOMC minutes were released by the Federal Reserve and Fed chair Jerome Powell spoke at a press conference, he explained to the audience why they decided against cutting interest rates. The prices rebounded Thursday, after the US equity and crypto markets refocused on the current fundamentals and projected long-term effects of President Trump’s economic mandate. 

BTC is still trading in the range of $115,000-$121,000, which it’s been doing for 18 days. Data suggests that a new range will be added soon. 

Hyblock Capital analysts described pre-and post-FOMC prices as an attempt to find liquidity. “a classic indecision 15m candle emerged with wicks on both sides as markets wavered.” The analyst pointed to the 10% depth orderbook metric turning red which increased the chances of price reaching a $115,883 liquidation level. 

Look at the heat map showing the latest liquidations for BTC/USDT pairs at Binance and Bybit. The liquidation rate and range are unchanged. Longs and shorts have the same price, but liquidation is at risk below $115,000. 

TRDR data on aggregate orderbooks (2.5% to 10%) shows that the sell wall thickens at $121,100, and there are substantial bids at $111,000. 

Prices are falling, resulting in a downward range extension

Analysts at Cointelegraph suggested on Wednesday that Bitcoin’s price compression BTC’s futures market is not dominated by aggressive leverage, which could indicate that the range of BTC will be expanding. Bollinger bands had narrowed at that time and BTC’s price was above the moving average of 20 days. Many traders predicted an upside breakout. 

Despite Bitcoin’s lower liquidity being the focus of attention, many positive things are still in play. Charles Edwards, founder of Capriole Investments, said Bitcoin is a good investment. treasury buyers per In the last six weeks, day has taken off. “with more than three companies buying Bitcoin every single day.” Edwards also noted that his ‘treasury buys and sells’ metric shows that “there’s currently 100:1 buyers versus sellers per month.” 

Related: Bitcoin price retargets $119K as treasuries buy 28K BTC in two days

The spot Bitcoin exchange-traded funds have seen a return of inflows after a week that saw $285 millions outflows. SoSoValue data shows that ETFs received $641.3 millions since July 23. total netflowsBitcoins’ price is falling, but the value of Bitcoin remains stable.

The White House Crypto Report and the speech of SEC chair Paul Atkins on Thursday, American Leadership in Digital Finance Revolution also established a precedent. They set out clear policy objectives that describe how US President Donald Trump’s administration and the regulators plan to prioritise the growth of cryptocurrency in the US.

They may not have an immediate effect on the crypto market, but they set up the basis for greater adoption. This gives investors confidence and the opportunity to invest more in Bitcoin and other cryptocurrencies. 

Price drops in this range of $115,000-$111,000 are likely to occur in the short run if Bitcoin sellers remain dominant. The bulls’ preferred outcome is a large bid above $111,000, which would generate a surge in volume to push the price range back up over $116,000. Even better would be for the CVD spot market and the futures contracts to turn positive when buyers push both markets hard in an effort to close the daily above $120,000. 

This article was written for general informational purposes. It is not meant to provide investment or legal advice. These are solely the opinions, views, and thoughts of the author and may not reflect the opinions and views of Cointelegraph.