2023-6-7 22:00 |
Bitcoin keeps moving sideways in a tight range as regulatory pressure in the U.S. mounts with two lawsuits against major crypto exchanges. The number one crypto by market cap could yet see crab-like price action, but the bulls could catch a break in the short term, according to an analyst.
As of this writing, Bitcoin (BTC) trades at $26,500 with a 2% profit in the last 24 hours. In the previous week, BTC recorded a 2% loss. In contrast, other cryptocurrencies in the top 10 by market cap recorded similar price action except for Binance Coin (BNB), which recorded a 14% loss over the same period.
Positive Outlook For Bitcoin Price?According to analyst Ali Martinez, the price of Bitcoin could see further appreciation. Over the week, the cryptocurrency has retraced but stayed above critical resistance.
Despite the unfavorable and uncertain macro conditions and regulatory environment, crypto market investors continue to battle to determine a clear direction. In this context, Martinez stated the following for BTC’s price using the TD Sequential Indicator, as seen in the chart below:
The TD Sequential presents a buy signal on the hourly chart, which could see $BTC rebound to $27,000 – $27,300. Still, #BTC must avoid an hourly close below $26,360 because it could lead to a downswing to $25,800.
Despite the forecast, uncertainty could be the most critical factor, rendering the buy sequence ineffective. A break above the $27,000 to $27,300 levels could hint at a positive outlook for BTC traders in the short term.
Conversely, $26,000 and $26,300 are still critical support levels, as the 200-weekly moving average (WMA) sits around that area. Bulls must defend this average to prevent the price from declining further, possibly into the low $20,000.
As a positive sidenote, the spike in volatility in the previous trading sessions contributed to a cleanse in Open Interest (OI). Per a separate analysis, over $800 million in OI was wiped out as BTC took liquidity in both directions.
Often, when OI is taken out and overleveraged positions are closed, the market is less incumbent to trend in a single direction. A pseudonym analyst stated:
We’ve seen quite the volatility over the past 48 hours. In total, we’ve seen over $800M+ in Open Interest being wiped out during this time. High leverage has been flushed out towards both sides. Liquidity taken. Up to spot to take determine the direction from here.
Cover image from Unsplash, chart from Tradingview
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