Bitcoin (BTC): Levels to Watch in Case of Breakout Scenarios

Bitcoin investors would admit the leading cryptocurrency has traded inside a constricted range within the past couple of days. The performance appears somewhat different as market players know BTC for its high volatility. Nevertheless, Bitcoin’s volatility and volumes might return soon.

Bitcoin has kept its price actions inside $28.5K – $31.5K over two weeks. Some interpret the current bias as a signal that the UST-driven fall tapered out. As this is true, market participants remained on the sidelines, waiting for the danger to fade. The bellwether crypto can’t stay within its prevailing range for stretched periods, translating to an imminent breakout from the mentioned territory.

Possible Results to Expect amid Breakout

The prevailing crypto market conditions suggest a bear market resumption. That outcome translates to Bitcoin dropping from the current range to the downside. That may see BTC plunging to retest its lower lows at $26,000 or possibly lower. A severe drop would mean a descending foothold retest or a plunge beneath.

A bullish case supported by institutional and whale accumulation might lead to a stable upsurge plus previous support retest. For instance, the 0.5 FIB level falls at $37,500, which previously served as a steady support level. Bitcoin needs a more than 22% upside move from the current value area for a potential retest of the mentioned foothold.

BTC On-chain Analysis

BTC’s exchange outflow and inflow volumes surged slightly within the past 24 hours. For now, exchange inflows stood at 19,409 Bitcoin, whereas inflows hover briefly higher near 19,530. That explains the minor uptick within the past day. Nevertheless, a slight difference isn’t enough to confirm a possible breakout.

The previous 24 hours saw addresses with over 1,000 BTC increasing slightly, jumping to 2,208 from 2,206. That signals institutions and whales holding off Bitcoin purchases. They stopped selling their tokens, though that could be temporary. Though the road forward remains foggy, a breakout is around the corner.