bitcoin [BTC] Breakout Scenarios: Here are the levels to watch out for in one case.

If you have invested in Bitcoin, chances are you will find that Bitcoin has been trading within a narrow range over the past few days. Given that BTC is known to be very volatile, its performance is quite different from the norm. However, it may not be long before Bitcoin volume and volatility recover.

Bitcoin has traded between $28,500 and $31,500 specifically over the past two weeks. Some see the current performance as a sign of fewer crashes due to UST. While this is true, investors are still waiting for the risk to pass. Well, Bitcoin cannot stay in its current range for an extended period.

Potential outcomes that can be expected during breakout

The dominant market sentiment is that a bear market will resume. This result means that Bitcoin will fall from its current range for further declines. If this turns out to be true, it could retest Bitcoin’s recent low below $26,000 or potentially lower it. You may want to retest the descending support or take a break below it, especially if the decline is heavy.

Source: TradingView

A bullish scenario backed by whales and institutional accumulation could lead to a strong bullish and a retest of previous support. For example, the 0.5 Fibonacci line falls below the $37,500 price level, which previously acted as a strong support area. Bitcoin must rise at least 22% from its current price level for that retest.

On-chain analysis of BTC

Bitcoin inflows and outflows from exchanges have increased slightly over the past 24 hours. Exchange inflow is currently 19,409 BTC, while inflow is slightly higher at 19,530. This explains the slight upside over the past 24 hours, but the small difference is not enough to point in the direction of a potential breakout.

glassnode studio btc addresses with balance 1k btc exchange inflow volume total btc exchange outflow volume total 1

Source: Glassnode

The number of addresses holding more than 1,000 BTC has slightly increased from 2,206 to 2,208 in the last 24 hours. A whale is a signal that the institution is still holding back BTC purchases. They specifically stopped selling BTC, but this may be temporary. The road ahead is still foggy, but the breakthrough is right around the corner.

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