Bitcoin bounces within the Range
BTC/USD fell to $31,000 before buyers stepped in to pick up some cheap bitcoin. Since the local low BTC rallied 18% and currently trades above $36,300. Bulls have overcome a pivotal price point which should provide impetus for a sustained relief rally to the upper-bound of the range.
On the flip side, if BTC/USD slides below the pivot and fails to bounce at $33,470, then a test of the $30,000 level would be next.
However, open interest and short traders appear to be doubling down according to data from coinalyze, painting a somewhat large target on their backs for a serious short squeeze.
All in all, market structure still suggests a ranging market, and relatively low volumes confirm this thesis all the more.
Levels to watch
- Reclaim $43,000 level (20-weekly EMA) suggests a move to $50,000.
- Rejection from the $40,000 (psych level) suggests a retest of the pivot.
- Close below $35,800 suggests a test of $33,470.
- Weakness below that suggests a move to $30,000.
Meanwhile, bitcoin transfers to exchanges have reduced significantly to pre-bull market lows when measured on a 7-day Exponential Moving Average.
This suggests that current market participants are not keen on selling coins on the open market at these prices. The data describes increasing hodling behaviour and is a sign that weak hands (short term participants) are largely out of the market.
Bulls lead the way.
Catch you next time.
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