Bitcoin (BTC) recently tested three-day lows as the market approaches the April 20 weekly close, with analysts projecting a potential liquidity grab ahead. Recent data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD dropped 1.5% to $83,974 before staging a modest rebound.
During the Easter holiday weekend, Bitcoin exhibited reduced volatility, yet concerns arose regarding the strength of nearby price support levels. Analyst Mark Cullen provided critical insights into the current market liquidity, expressing skepticism about the $83,000 support level. “Bitcoin 90k liquidity still calling. BUT, I think the 83k level isn’t safe; those lows from last Sunday and Wednesday are likely to get run first,” he summarized on X, urging caution among traders.
Cullen, along with other analysts, outlined a short-term BTC price range between $83,000 and $86,000 during the extended Easter weekend. This range is noteworthy for traders monitoring potential liquidity targets, as Cullen suggests that the market may seek liquidity from lower price levels before triggering further upward momentum.
Market sentiment remains cautious, as noted by trader Daan Crypto Trades, who anticipates increased volatility in the coming week. “The charts are quite compressed, and any decent good/bad headline could spark a significant market movement,” he remarked, underscoring the unpredictable nature of Bitcoin trading.
Accompanying charts demonstrate Bitcoin’s price action concerning CME Group’s Bitcoin futures, suggesting that a gap could create a short-term price magnet. Additionally, another trader, Roman, is monitoring potential bullish patterns, indicating he may look to enter long positions if volume decreases on the way to $76,000.
Market Outlook: Potential Breakout on the Horizon
Despite the current uncertainty, trader and analyst Rekt Capital pointed out positive developments in Bitcoin’s daily chart. He noted that Bitcoin has successfully broken out of a multimonth downtrend and has not violated this trend during recent retests as support. This behavior reinforces confidence that Bitcoin may sustain its upward trajectory.
As we look ahead, the prospects for Bitcoin in the short term appear mixed yet intriguing. Traders should remain vigilant, closely monitoring price levels and market sentiment as indicators of potential breakout opportunities.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
