Bitcoin Stuck: Bulls and Bears Struggle to Break Price Stalemate

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• Bitcoin (BTC) continues with its sideways price action under $27,000 on May 22 as the bulls and bears find it hard to break the stalemate.
• BTC price has fluctuated inside a narrowing ascending triangle range since May 11, defined by a horizontal resistance around $27,500 and a rising trendline support currently near $26,890.
• Flat price action in the Bitcoin market can precede periods of extreme price volatility, triggered by big events.

Why is Bitcoin Price Stuck?

Bitcoin (BTC) continues with its sideways price action under $27,000 on May 22 as the bulls and bears find it hard to break the stalemate. Notablely, BTC price has fluctuated inside a narrowing ascending triangle range since May 11, defined by a horizontal resistance around $27,500 and a rising trendline support currently near $26,890. The volumes were relatively lower which suggests fewer traders participated in the intraday dump-and-pump move. These technicals illustrate an ongoing bias conflict among traders who are unsure about the direction of Bitcoin’s next price trend.

What Causes Flat Price Action?

Flat price action in the Bitcoin market can precede periods of extreme price volatility triggered by big events. For instance, after FTX collapsed in Nov 2022 – Jan 2023 Bitcoin fluctuated in the $16k-$17k range despite failed attempts to break above or below this level. A similar flat trend followed after Terra’s collapse in May 2022 where BTC/USD traded inside the $28k-$30k range for almost a month before entering into a decisive breakdown stage. This shows us that traders are waiting for potential triggers that could push BTC prices decisively in either direction.

Potential Market Trigger

One major potential event that could trigger such movement is Federal Reserve’s decision on interest rates next month – which is likely behind current sideways action of BTC prices due to conflicting outlooks on raising interest rates.

Conclusion

Ultimately flat trajectories like these are common for Bitcoin markets and often lead to periods of extreme volatility when certain triggers occur so investors should be aware of this possibility going forward.