Disclaimer: The information presented does not constitute financial, investment, trading or other advice and solely reflects the opinion of the author.
- The daily price action in the timeframe showed a bearish structure.
- Fibonacci retracement levels indicated that further losses are likely for BTC.
Bitcoin in the last two weeks [BTC] was trading in the $29,000 to $29.2,000 range. During this period, volatility has been less, except for the rally to $30,000 on August 1-2 and the subsequent decline.
Read Bitcoins [BTC] Price prediction 2023-24
At the time of writing, Bitcoin had yet to complete a daily trading session below $29,000. But the recent rejection from the $30,000 area showed a bearish intent.
Increasing selling pressure could push BTC into the $26,000 demand zone
Source: BTC/USDT on TradingView
The negative correlation between Bitcoin and stock market indices showed that despite buyer strength in traditional finance, BTC saw a distinct lack of demand. The RSI has shown bearish bullish momentum since July 24, staying below neutral 50.
The OBV has been relatively flat for the past two weeks, but has been slowly trending down since early July. In terms of price development, the market structure of BTC was bearish on the daily timeframe. The $30.2K and $29.7K areas highlighted in red were shorter timeframe resistance zones.
To the south was a bullish order block in the $25,000 area, highlighted in cyan. A series of Fibonacci retracement levels (yellow) showed the 61.8% and 78.6% retracement levels at $27.3K and $26.2K, respectively. Therefore, a bounce from these levels after a retracement is possible.
Forex flow saw additional withdrawals over the past week
Source: Santiment
Bitcoin’s Age of Consumption indicator saw occasional spikes in July, most recently on July 27, but nothing significant since. The number of active addresses has remained stable over the past few days, showing good network participation by users.
Is your portfolio green? Check out the Bitcoin Profit Calculator
The foreign exchange balance sheet showed outflows over the past four days. This showed that investors were withdrawing BTC from exchanges, indicating accumulation.
The evidence indicated that downward pressure is more likely for Bitcoin in the coming weeks. This bearish idea would be invalidated if Bitcoin could scale above $30,000 and flip the $30.2,000 zone for support.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.