After an increase above $29,000 fails to develop into an ongoing trend, volatility is ready to resume.
At the opening of Wall Street on May 27, Bitcoin held at $29,000 as significant support levels were only a few hundred dollars away from the current price.
A tedious week of price movement was once again marked by declining volatility, according to data from Cointelegraph Markets Pro and TradingView.
BTC/USD was in a constrained range on that particular day, and according to Cointelegraph contributor Michal van de Poppe, it wouldn’t take much of a departure from the norm to disturb the equilibrium.
To prevent a repeat of the week’s $28,000 low and to preserve the possibility of a higher low formation, levels to hold presently were close by at $28,600 and $28,200.
Commentator Bob Loukas, who was watching the Bollinger Bands volatility indicator that day to alert of potential oncoming upset, was similarly cautious.
As in recent weeks, there was a general perception on social media that crypto was about to make a capitulation move.
Bears Benefit from In-Profit Supplies
Concerns about the existing prices not holding up increased as a result of a network-wide perspective.
Kripto Mevsimi, a contributing analyst at the on-chain analytics platform CryptoQuant, made gloomy predictions after analyzing the proportion of the supply that was in profit.
Approximately 55% of the supply was profitable at the time, he noted, and based on past trends, more price capitulation should occur to offer some assurance of a global bottom.
However, before the final dip, there should be a sideways phase for BTC/USD. This would align the price development with the bear market in 2018 and the crash in March 2020.
The three phases were compared in a companion chart, starting with a peak of $20,000 in 2017.
