Bitcoin Price Analysis: Uncertainty Remains as BTC Hangs at Important Support Levels
Bitcoin is making an attempt a restoration after final week’s sharp correction, however the market stays at a significant choice level. While the worth has bounced, the broader sentiment stays cautious. The key query is whether or not this bounce is an actual reversal or only a non permanent aid earlier than one other leg down.
Technical Analysis
By Shayan
The Daily Chart
On the each day chart, BTC discovered assist and bounced off the 200-day shifting common round $108K. This space has held as robust demand in earlier corrections, and used to behave as a base for the most recent bullish transfer in September and early October.
However, the asset nonetheless hasn’t damaged again above the dotted midline of the channel or the 100-day MA, each situated across the $115K mark. Until we see a each day shut above these two resistance components, the patrons can not regain full management.
The 4-Hour Chart
On the 4H timeframe, BTC is testing the descending trendline from the latest high and is at the moment hovering across the $111K stage. The construction is exhibiting a possible breakout, however the worth wants to shut above the $112K space to verify a shift in short-term momentum.
The RSI can be pushing towards 60, suggesting rising bullish stress however not but overextended. In case the descending trendline breaks to the upside, the worth will seemingly goal the $116K resistance zone within the upcoming days. On the opposite hand, a failed breakout would in all probability result in a deeper decline towards the important $100K demand zone.
Sentiment Analysis
Open Interest
Analyzing the futures market sentiment, open curiosity is forming a base round 35 billion after a pointy flush, indicating that whereas some merchants are stepping again into leveraged positions, the general market sentiment remains to be unsure.
With the open curiosity nonetheless comparatively high in comparison with latest historic ranges, the chance of one other cascade liquidation stays, particularly if the market breaks under the talked about resistance ranges. If BTC fails to reclaim $115K cleanly, one other wave of lengthy liquidations may observe, particularly heading into the weekend.
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