Disclaimer: The information presented does not constitute financial, investment, trading or other advice and solely reflects the opinion of the author.
- The recent decline eased on a daily bullish order block and range low in May.
- Coinglass’ liquidation map marked $25.7K and $26.4K as key liquidity levels.
According to the technical indicators on the timeframe charts below Bitcoins [BTC] The short- and medium-term prospects still do not look good. In addition, over 80% of interest rate traders surveyed are leaning towards a possible Fed rate hike at the next FOMC meeting in September. This begs the question: are additional losses likely?
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The recent price drop moderated with a previous May range low of $25.8k and a daily bullish order block (OB) of $24.8k – $26.0k (cyan). However, a solid recovery remains futile as bulls and bears battle it out around $26,000.
The H4 50-EMA was tested again as a resistance
Source: BTC/USDT on TradingView
The enlarged 4-hour chart showed that the current price levels coincided with the May bottom. BTC has fluctuated between $25.8k and $28.3k in May, with an average of around $27k.
Interestingly, the aforementioned May range low coincided with a daily bullish OB (cyan) and support at $25.2k. The retest of the range low could have led to a rise into the mid-range near $27,000, but the price met rejection at the 50-EMA (Exponential Moving Average) of $26.5,000.
So, the mid-range and the 50-EMA are key resistance levels for the next few hours/days. If sellers break the confluence area (cyan), BTC could turn lower with next support a weekly bullish OB from $21.45k to $23.45k.
Meanwhile, the RSI improved but later fell back below the 50 level and has fluctuated below it – muted buying pressure. Similarly, the CMF fluctuated near the zero mark, underscoring the fluctuating capital inflows for the BTC market.
Why $25.7K and $26.4K could be crucial levels
Source: Coinglass (BTC liquidation map on Binance Exchange)
A look at Coinglass liquidation card We are losing some potential key levels to consider in the near term. For clarity, the liquidation map captures risk levels for the cryptocurrency futures trading market and is based on past price trends.
Each liquidation bar represents how badly a position could be affected if the price hits that level. Traditionally, higher “liquidation bars” tend to have stronger price reactions due to increases in liquidity.
To read Bitcoins [BTC] price prediction 2023-24
Since the spot and futures markets have complex influences, the liquidation map could offer differentiated insights into possible spot prices.
Ergo, the key levels in this particular Binance Exchange BTC liquidation chart are $26.4K and $25.7K on the daily timeframe. $25.7k is near the range low, while $26.4k is near the H4 50 EMA resistance. Therefore, the two levels were important price levels to watch for in the near term.
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