bullish

Bitcoin

A critical phase in <a href="https://coinpedia.org/price-prediction/bitcoin-price-prediction/" target="_blank" rel="noreferrer noopener">Bitcoin's price</a> movement is on the horizon. On Crypto Banter’s <a href="https://www.youtube.com/watch?v=X4VVJkUJKdI" target="_blank" rel="noreferrer noopener nofollow">The Sniper Trading Show,</a> the analyst warned of a "shakeout" phase following a period of side capitulation. He said that this phase is characterized by increased volatility and price fluctuations.   
<h2 class="wp-block-heading" id="h-what-happens-during-a-price-dump">What Happens During a Price Dump?</h2>   
When Bitcoin experiences a major drop, such as the recent pullback, we often see an initial spike in trading volume. This spike means heightened activity as traders react to the price movement. However, as the market settles into a sideways trend, trading volume typically begins to taper off.   
Initial Volume Spike: After a dump, we observe a volume increase as traders enter the market, either to capitalize on lower prices or to exit positions.   
Volume Decline: Following this spike, the volume tends to decrease during sideways trading, which suggests a lack of buying pressure.   
<h2 class="wp-block-heading" id="h-the-effects-of-decreasing-volume">The Effects of Decreasing Volume</h2>   
As the volume decreases, it signals a potential lack of interest in buying at the current price levels. This can lead to a shakeout, where traders who entered positions may be forced to liquidate their holdings due to losses.   
Shakeout Effect: During a shakeout, traders with leveraged positions can face liquidation as prices drop further, often driven by fear and desperation. This process removes weak hands from the market and can set the stage for a more significant rebound.   [post_titles_links postid="371142"]   
<h2 class="wp-block-heading" id="h-buy-zones-and-expected-movements">Buy Zones and Expected Movements</h2>   
The current analysis suggests that <a href="https://coinpedia.org/price-analysis/is-bitcoin-going-towards-84k-or-65k/" target="_blank" rel="noreferrer noopener">Bitcoin has entered a crucial buy zone</a> of around $66,000. The analyst expects a major bounce in the next 24 to 48 hours, which could propel Bitcoin above $70,500.   
Key Support Levels: If Bitcoin holds above the $66,000 mark, it may solidify a bullish trend. Support levels below this include $64,200 to $65,000, which could act as a buffer during downturns.   
Expectations for Price Action: A bounce back towards higher levels is expected, which could lead to further price exploration. As volume increases, traders should watch for the emergence of new higher highs and higher lows.

Bitcoin Price Gears Up For ‘Shakeout’ Phase: Key Levels, Process and Aftermath Explained

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