The price of Bitcoin hovers around $ 36,300 after the correction of $ 40,000 in the last 72 hours. Trader Peter Brandt believes that BTC would face a "tricky" correction or see a broader rally.
Brandt, a longtime trader, pointed to the daily price chart for Bitcoin to explain that the range is narrowing.
When an asset's range narrows and volatility falls, a major price movement usually occurs.
Will Bitcoin's big price move be a rally?
It remains uncertain whether Bitcoin would see an explosive rally to the upside or see a correction.
When it comes to a tight range like this, if the first momentum move is a rally, then a major bullish move would probably follow. Brandt said:
“Interest situation in $ BTC. It could be wrong, but I think the market needs to take off from here or there will be a more complicated correction. We'll see".
Raoul Pal, CEO of Real Vision Group, echoed a similar sentiment. Referring to Brandt's tweet, Pal wrote:
“Yes, I totally agree. A triangle like this will provide great movement one way or the other. "
There are compelling arguments to justify both a bearish pullback and a retest of the all-time high of $ 42,000 for Bitcoin.
Currently, the Coinbase premium that led the Bitcoin rally is non-existent. Throughout the uptrend, Bitcoin was trading higher on Coinbase, signaling strong demand from US buyers.
If the Coinbase premium returns, this would provide further conviction that the Bitcoin rally would resume.
One positive trend is that bagged whale stocks are falling. This means that the overall selling pressure in the market is much lower than in recent weeks.
Lower sales pressure but lower demand from buyers
Simply put, the market is stagnant because overall it is experiencing lower selling pressure from whales, but demand from buyers is not as high as before.
Ideally, Bitcoin would need to see more stablecoin deposits on exchanges and Coinbase premium to see again a stronger argument for more advantages.
Cantering Clark, a cryptocurrency trader, also noted that the performance of the US dollar is another variable that could potentially affect Bitcoin. He said:
“Too much certainty in the market right now. I'm taking a little risk off the table. In addition, CB leads sales and does not rebound at the lows. Long-term expectations are higher, but in the short term, I think next week will be volatile. Interested to see how Yellen's comments affect the dollar. "
Bitcoin, currently ranked No. 1 by market capitalization, is up a 3.27% in the last 24 hours. BTC has a market capitalization of $ 675.11B with a 24-hour volume of $ 53.52B.