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Amid the market’s momentary pause, Bitcoin (BTC) has seen a 2% price drop in the past 24 hours. The largest cryptocurrency by market capitalization has been hovering between key resistance and support levels, with some analysts suggesting that volatility could be in BTC’s short-term future.
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Bitcoin Price Consolidates Near ATH
On Wednesday, Bitcoin, alongside the rest of the crypto market, saw a small retrace ahead of the Federal Open Market Committee (FOMC) release of the May 6 and 7 Meeting Minutes.
The flagship cryptocurrency dropped 2.7% from the $110,000 Daily Opening to a multi-day low of $107,107, suggesting a cautious approach from investors.
Notably, Bitcoin has seen a significant 15% rally over the past month, hitting a new all-time high (ATH) of $111,953 nearly a week ago, and recovering around 50% from April lows.
Since reaching its new ATH, Bitcoin has moved sideways, trading between the $106,800-$109,700 levels.
Despite the small retracement, analyst Crypto Jelle considers that Bitcoin’s trend into price discovery remains “intact,” pointing out that price has been consolidating above the previous highs.
Per the chart, the cryptocurrency is currently forming a symmetrical triangle pattern in the lower timeframes, with the upper boundary sitting between the $109,00-$110,000 mark.
To Jelle, the cryptocurrency is “building pressure for the next leg higher,” with a breakout propelling the cryptocurrency to another 30% rally.
The analyst previously highlighted a Power of 3 (Po3) formation in BTC’s chart, suggesting that its price expansion targets the $140,000-$150,000 level after reclaiming the new ATH resistance.
Ali Martinez stated that BTC remains “range-bound” despite today’s price drop, but added that the range’s low is the key level to watch. He warned that a breakdown below the $106,800 support could trigger increased volatility, which might send BTC’s price to lower levels.
BTC Retest To Trigger Volatility?
Titan of Crypto also affirmed that Bitcoin currently sits at a key level. According to the market watcher’s analysis, BTC is “still hovering around the daily Tenkan,” which is the level to watch during the potential volatility from the FOMC Minutes.
A breakdown from this support zone could send the cryptocurrency’s price to the next key support at around the $102,700 mark. On the contrary, holding the current levels could set the stage for a new retest of the range’s upper boundary.
Meanwhile, Daan Crypto Trades noted that as Bitcoin consolidates near ATHs, BTC-based exchange-traded funds (ETFs) have seen significant inflows over the past few weeks, recording their second-best performance last week.
As he explained, one of the cycle’s better “indicators” to determine strength or weakness at local tops or bottoms has been the ETF flows, detailing that, generally, big inflows after a big run, while BTC’s price doesn’t continue its rally, have suggested a local top.
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To the trader, “it is important for the bulls to get that move going quickly because getting billions of inflows without proper price progress isn’t generally the best,” adding that “for the effort that’s put in and an ATH break, you’d want to see more.”
Daan considers that if the massive inflows stop and BTC’s price holds, then its short-term performance will likely continue. However, if price doesn’t hold its current range, “we might need to see a bit of a flush & panic first before the proper breakout move.”
As of this writing, Bitcoin trades at $107,700, a 1.6% decrease in the weekly chart.
Featured Image from Unsplash.com, Chart from TradingView.com
