Bitcoin [BTC] stuck in new sideways structure: Will near-term bulls prevail

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

– BTC consolidated near $30k. 

– Declining CVD spot and exchange long/short ratio favored sellers over the weekend.

Bitcoin [BTC] crossed $30k only to enter another price consolidation within $29.6k – $31k. Despite the overall positive sentiment, BTC’s short-term prospects face mild selling pressure. According to Coinshares, BTC accounted for over 98% of inflows ($56m) in digital assets investment products in the previous week of April 2 – 9. 

Read Bitcoin’s [BTC] Price Prediction 2023-24

However, trading volumes remained low at $970m, as short-Bitcoin saw minimal outflows of $0.6m. As such, the current bullish sentiment isn’t void of selling pressure, which may affect players’ short-term gains. 

More consolidation, dump, or surge – which way for BTC?

Source: BTC/USDT on TradingView

Since mid-March, BTC consolidated around $28k. It broke out of the range on 10 April but has entered another price consolidation range of $29.6k – $31k. Notably, the price action was above the 50-EMA (Exponential Moving Average) and the 200-MA (Moving Average), showing BTC was above its short and long-term trends – thus capturing the prevailing bullish sentiment. 

A bullish breakout could set BTC to retest the next resistance level at $32.5k – it coincides with one of its May 2022’s upper range boundary levels. The next target will be $34.3k if near-term bulls clear the $32.5k hurdle. 

Note that the range’s lower boundary intersected with 50-EMA, meaning a break below the confluence area could point to a weakening structure. Southwards, the key support levels lay at $28.7K, the dynamic 200-MA, and the previous range lower boundary of $26.7K. 

Meanwhile, the price action made new highs as RSI made new lows – an increasing divergence that may expose BTC to increased short-term selling pressure. In addition, the ADX (Average Directional Index) declined to suggest a weakening short-term uptrend with a potential extended consolidation or retracement. 

CVD spot declined as shorts outdo longs

Source: Coinalyze

According to Coinalyze, BTC’s CVD (cumulative volume delta) spot declined but flattened at press time – showing sellers gained market leverage, but bulls weren’t exiting their positions. 

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However, over $2.8m worth of long positions were liquidated in the past 24 hours compared to $742k of short positions, according to Coinalyze. Moreover, the exchange BTC long/short ratio showed sellers had slight leverage in the 4-hour timeframe, reinforcing the bearish outlook for BTC in the short term.

Source: Coinglass

In conclusion, BTC is enjoying massive positive sentiment, but there is also increasing selling pressure that may curtail it temporarily in the short term.