Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Bitcoin continued to hover just above the $29k area.
- The short-term bullish and bearish strongholds were clear- but BTC’s next trend wasn’t yet present.
Bitcoin [BTC] bulls faced rejection from $30.2k on 8 August. The price has headed downward since, although it was stagnant at $29.4k over the weekend. It was likely that Monday’s high and low would establish a range that short-term traders can watch over the coming week.
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Bearish order blocks were present at $30.2k and $29.8k to the north. To the south, the recent lows presented an attractive area from a liquidity perspective. The higher timeframe BTC price charts showed $28.4k was critical for the bulls to defend.
The three-week Bitcoin range is expected to persist
In the past three weeks, Bitcoin has traded between the $28.8k and $29.8k levels. It pushed as high as $30.2k once, but the bulls were unable to hold on to their gains.
The RSI showed that the momentum was bearish since 9 August on the 2-hour chart. The indicator climbed above neutral 50 in recent hours, hinting at a possible short-term sentiment shift.
This was backed up by the volume indicators. The CMF climbed to +0.24 to highlight notable capital flow into the market. The A/D indicator also spiked upward to underline a rise in buying volume. Hence, a move upward was possible.
The bearish order blocks (red box) from the H4 chart were not yet flipped to support. Therefore, swing traders looking for buying opportunities can wait for a move back toward $28.4k-$28.8k.
The Open Interest showed speculators exiting the market as BTC bounces from $29k
The early hours of Monday, 14 August saw a wave of selling that forced BTC to drop to $29.1k. Bitcoin bulls reclaimed the level it had been at before the drop within a few hours. Yet, this bounce was accompanied by a drop in the Open Interest.
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This showed that speculators with short positions likely closed them during the drop in profit. It also showed that sentiment remained bearish, as bidders were absent during the minor recovery. The spot CVD was also headed further downward.
Traders can look for opportunities at either extreme of the nearly month-long range. However, a drop below $28.4k could be followed by further losses. The next support levels to watch would be $27.3k and $25.5k.