Bitcoin (BTC) is currently experiencing sideways price movement under $27,000 as bulls and bears struggle to break the ongoing stalemate.
Since May 11, BTC has been fluctuating within a narrowing ascending triangle range, marked by horizontal resistance around $27,500 and rising trendline support near $26,890.
On May 22, Bitcoin briefly dropped below the support trendline to around $26,550 but quickly recovered to $26,900, demonstrating a bullish rejection. However, trading volumes remained relatively low, indicating that fewer traders participated in the intraday move.
These technicals highlight an ongoing bias conflict among traders who are uncertain about the direction of Bitcoin’s next price trend. This uncertainty is also reflected in derivatives markets.
Historically, flat price action in the Bitcoin market has preceded periods of extreme price volatility triggered by significant events. For instance, Bitcoin witnessed similar flat trends following the collapse of FTX crypto exchange and Terra in 2022.
Currently, the conflicting outlook on raising interest rates is likely the main factor behind the sideways movement of stocks, risk assets, and cryptocurrencies. As a result, Bitcoin traders are waiting for a potential market trigger that could decisively push BTC price in either direction. One such major event could be the Federal Reserve‘s decision on interest rates next month.
In the short term, technical analysis suggests that a potential breakout above Bitcoin’s 50-day exponential moving average (50-day EMA) around $27,580 is possible. If this occurs, BTC price may retest the crucial $30,000 resistance level, with a high probability of rejection upon the first attempt.
On the other hand, a pullback from the 50-day EMA could send BTC price towards the next significant support level at its 200-day EMA near $25,000 for a potential bounce.
