Bitcoin hit a resistance level of $28500, which may indicate more upward potential

Bitcoin shows bullish signs, but the short-term supply and demand situation raises concerns that a slight drop below $28000 may provide revenue opportunities. However, traders should wait for a retest of key levels on Monday (October 16)

Bitcoin shows bullish signs, but the short-term supply and demand situation raises concerns that a slight drop below $28000 may provide revenue opportunities. However, traders should wait for a retest of key levels on Monday (October 16). Although the SEC's approval of Bitcoin spot ETFs has led to increased volatility in Bitcoin (BTC) prices, there are still signs of further increase. Of particular concern is that its rise has surpassed the performance of warm supply. Last weekend, AMBCrypto released a Bitcoin price report stating that the market outlook is biased towards bearish. The report also emphasizes that the key support at $27200 is a key level for bulls to break through and can reverse the fate of prices. At present, the transaction price of Bitcoin is $28500. What may happen in the next few weeks?

Is it crucial for BTC bulls to shift from a moderate resistance level to a support level?

Since mid June, the trading range of Bitcoin has expanded from $24800 to $31800. Its middle price is $28300, which has become a support level as of the time of writing. The market structure within the daily time range shows a bullish trend. In addition, the relative strength index (RSI) is also higher than the neutral 50.

The Direction Motion Index (DMI) shows that the Average Direction Index (ADX) (yellow line) and+DI (green line) are both above 20, indicating that the market is in a strong upward trend. However, Chaikin's cash flow (CMF) fell below -0.05, indicating that a large amount of capital is leaving the market.

Due to insufficient purchasing pressure, Bitcoin may undergo consolidation within the range of $28000 to $28500. If we continue to trade sideways in the next few days, the market may have more time to determine future trends.

The liquidation level chart shows that there may be a slight pullback

According to the cumulative clearing level Delta data, it is shown that short positions may further lose money, although the amount of funds may not be sufficient to support large-scale actions to punish short sellers who are in a disadvantageous position. Therefore, in the coming days, the market may show a crab trend or even gradually decline, which may be beneficial for bulls. The liquidation level of long positions is close to $100 million and $250 million, respectively, with corresponding prices of $28000 and $27760. If prices gradually fall to these levels, it may encourage more short selling and increase market liquidity. Subsequently, the market may begin to reverse from these levels to clear positions that are short of $29300 and $29800.

However, based on current evidence, Bitcoin still maintains a bullish trend on the daily chart, but the current lack of sufficient demand to support the expectation of prices rising again to $30000 is not yet reasonable.

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