It may even be boring for traders right now, but Bitcoin is preparing a rare event which will shake up price action definitively, argues trader John Wick.
Bitcoin (BTC) fell back below $33,000 support on July 12 as a familiar cocktail of low volumes and mounting shorts pressured price action.
Shorters fail to spark a Bitcoin rout
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it hit local lows of $32,880 on Bitstamp.
Just like last week, a build-up of short positions on major exchange Bitfinex cost Bitcoin its range low, sending it back into its last zone of support before a $30,000 retest.
BTC/USD lost approximately 2.9% on the day, at the time of writing fluctuating around the $33,000 mark but staving off losses.
Earlier, analysts had been more upbeat about the short-term prospects, forecasting an upside bounce this week which could see a target of $38,000.
“I’m getting to the stage that I’m quite done with this range on Bitcoin,” an understandably weary Michaël van de Poppe summarized to Twitter followers.
Trader: Get ready for “violent move” in Bitcoin
Those looking for more excitement are not being left out this week, even as ranging behavior continues.
Related: Countdown to Grayscale’s big BTC unlock: 5 things to watch in Bitcoin this week
The inspiration this time comes courtesy of well-known trader John Wick, who in a series of tweets on Monday eyed a rare signal in Bitcoin which historically demands a snap price move.
“We have now entered a zone of coiled up volatility indicated by the yellow shading,” he commented alongside a chart describing an event called a “squeeze.”
“VIOLENT move incoming & imminent. This tells you its time to start paying attention. It can resolve as a squeeze breakout or fakeout in the coming weeks.”
Squeezes are not an everyday occurrence. The previous two events involved a trip from $9,100 to recent all-time highs at $64,500, along with the subsequent correction to $30,000, Wick says.
While the exact timing and nature of the next squeeze, or even its direction, remain unknown, Wick’s bias is to the upside.
Contributing to his belief are both recent accumulation of BTC and the strength of $30,000 support.
