Based on existing evidence, Bitcoin maintains a bullish trend on the daily chart, but the upward path may not be linear and may take some time to achieve.Bitcoin has a bullish trend, but insufficient demand in the short term is a worrying issue
Based on existing evidence, Bitcoin maintains a bullish trend on the daily chart, but the upward path may not be linear and may take some time to achieve.
- Bitcoin has a bullish trend, but insufficient demand in the short term is a worrying issue.
- A slight drop below $28000 may provide a buying opportunity, but traders can wait to retest key levels to execute their plans.
Following the false news of the SEC's approval of Bitcoin spot ETFs, the volatility of Bitcoin [BTC] intensified on Monday (October 16th). It encountered rejection at $30000, but continued to show signs of further increase. One of them is that its increase exceeds the realized price of warm supply.
AMBCrypto's copy from last weekendBitcoin Price ReportPoint out that the prospects for Bitcoin were bearish at that time. It also emphasizes that the $27200 mark is a key level for bulls to break through and turn their fortunes around. The current transaction price for BTC is $28500. What can we expect in the next few weeks?
Is the transition from mid range resistance to support crucial for BTC bulls?
Since mid June, the trading range of Bitcoin (orange) has extended from $24800 to $31800. The middle price is $28300, and as of the time of publication, the price has flipped to the support level. The market structure within the daily time range is bullish. 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) and+DI (green) are both above 20, indicating that a strong upward trend is underway. On the contrary, Chaikin's cash flow (CMF) fell below -0.05, indicating a significant outflow of capital from the market.
Due to a lack of purchasing pressure, Bitcoin may consolidate around the $28000 to $28500 range. If Bitcoin trades sideways in the next few days, it may give the market time to determine the next move.
The liquidation level chart shows that there may be a slight pullback
The cumulative liquidation level Delta indicates that short sellers may lose more, but the amount of funds may not be sufficient to ensure large-scale action to punish underperforming short sellers. Therefore, the crab market in the coming days may even gradually decline, which may be beneficial for bulls.
The liquidation amount of long positions is close to $100 million and $250 million respectively, with prices of $28000 and $277.6 million, respectively. Slow loss to these levels may encourage further short selling and increase liquidity flowing northward. Subsequently, there may be a reversal from these levels to clear short positions of $29300 and $29800.
However, based on existing evidence, Bitcoin maintains a bullish trend on the daily chart, but there is currently a lack of demand to justify the expectation of Bitcoin rising to $30000 again.
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