Bitcoins [BTC] Breakout Scenario: Here are the levels to watch out for in the event of a breakout

If you’re invested in Bitcoin, you’ve probably noticed that Bitcoin has been trading in a tight range for the past few days. The performance is quite different from the norm considering BTC is known to be very volatile. However, it might not be long before Bitcoin volume and volatility returns.

Bitcoin has been trading specifically between $28,500 and $31,500 for the past two weeks. Some see recent performance as a sign that the UST-induced crash has abated. While that’s true, investors are still waiting on the sidelines for the danger to pass. Well, Bitcoin cannot stay in the current range for long, which means that a breakout from its current zone is imminent.

The possible outcomes to expect during the outbreak

The prevailing market sentiment is that the bear market will resume. This result means that Bitcoin will fall out of its current range in favor of further downside. If that turns out to be the case, we could see a retest of Bitcoin’s recent lows near or possibly below $26,000. Perhaps a retest of descending support or a break below it, especially if the drop will be severe.

Source: TradingView

A bullish scenario supported by whale and institutional accumulation could result in a strong uptrend and a retest of previous support. For example, the 0.5 Fibonacci line falls to the $37,500 price level, which previously acted as a strong support zone. Bitcoin would need to recover at least 22% from its current price level for this retest.

BTC’s on-chain analysis

Bitcoin exchange inflow volume and exchange outflow volume have increased slightly in the last 24 hours. Exchange inflows are currently at 19,409 BTC, while inflows are slightly higher at 19,530. This explains the slight upward movement over the past 24 hours, but the small difference is not enough to suggest a potential breakout direction.

Source: Glassnode

The number of addresses with 1,000 or more BTC increased slightly from 2,206 to 2,208 in the last 24 hours. It is a sign that whales are institutions that are still holding back BTC purchases. They have notably stopped selling their BTC, but this could be temporary. The way forward still looks foggy, but the eruption is just around the corner.

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