The leading cryptocurrency Bitcoin (BTC) has experienced a volatile trading session in the last 24 hours, as the price fluctuated between $27,300 and $29,000. The cryptocurrency started the day with bullish momentum, breaking above the $28,000 resistance level and reaching a new all-time high of $29,060. However, the rally was short-lived, as sellers stepped in and pushed the price down to $27,509, wiping out most of the gains.
Bitcoin’s recent price swings continue as liquidity issues contribute to volatility in the market. Check this latest insight here:
🚨 Assessing Bitcoins price action over the last 12 hours: Yesterday, Bitcoin experienced significant price fluctuations between $27,300 and $29,000, and CryptoSlate believes the main reason is the increasingly illiquid… https://t.co/6VoAyaGw17 ❤️＆🔁 #Bitcoin #Crypto #Nft pic.twitter.com/s40SH5efXs
— Crypto411 (@CRYPT0411) April 27, 2023
One of the reasons for this sharp reversal could be the low liquidity in the Bitcoin market, which makes it prone to large price swings. According to CryptoSlate, Bitcoin liquidity has dropped significantly in 2022 and 2023, meaning that there are fewer coins available for trading on exchanges. This could be due to several factors, such as increased institutional adoption, long-term holding by investors, or reduced mining rewards.
Currently, Bitcoin is trading at $29,753, trading above the 100-day and 200-day moving averages and has found strong support at the 50-day moving average. The Relative Strength Index (RSI) is still in overbought territory but could move lower if Bitcoin fails to break above $30,000 in the near term.
In conclusion, while Bitcoin has seen bullish momentum lately, the current liquidity issues coupled with low open interest levels suggest further volatility and short-term weakness is possible. Traders should watch closely for any key support or resistance level breaks and be prepared to adjust their positions accordingly.
Disclaimer:
This content is for informational purposes only and does not constitute financial advice or investment recommendations. Before making any financial decisions, it is important to consult a qualified professional. We also advise that you always conduct your own research before investing in any digital assets or other products. Please use caution when investing in cryptocurrency, as this market can experience sharp swings in price.
