Disclaimer: The information presented does not constitute financial, investment, trading or other advice and solely reflects the opinion of the author.
- Bitcoin continued to trade just above the $29,000 level.
- The short-term bullish and bearish strongholds were clear – but BTC’s next trend was not yet in place.
Bitcoin [BTC] The bulls were rejected on Aug. 8 from $30.2,000. Since then, the price has declined, although it stagnated at $29.4k over the weekend. It is likely that Monday’s highs and lows would form a range that short-term traders can keep an eye on for the week ahead.
Read Bitcoins [BTC] Price prediction 2023-24
Bearish order blocks were in place at $30.2k and $29.8k to the north. In the south, the recent lows presented an attractive area from a liquidity standpoint. BTC price charts for a longer timeframe showed that $28.4k was crucial for bulls to defend.
The 3-week bitcoin range is expected to hold
Source: BTC/USDT on TradingView
For the past three weeks, Bitcoin has traded between $28.8k and $29.8k. At one point it surged as high as $30.2k, but the bulls failed to hold onto their gains.
The 2-hour chart’s RSI showed that momentum has been declining since August 9th. The indicator has climbed above the neutral 50 level in the past few hours, signaling a possible short-term sentiment reversal.
This was supported by the volume indicators. The CMF rose to +0.24 to highlight the notable flow of capital into the market. The A/D indicator also surged to underscore an increase in buying volume. Thus, an upward movement was possible.
The bearish order blocks (red box) from the H4 chart have not yet flipped to support. Therefore, swing traders looking for buying opportunities can wait for a return towards $28.4k to $28.8k.
Open interest showed speculators exiting the market as BTC rallied from $29,000
Source: Coinalyze
A sell-off erupted in the early hours of Monday, August 14, forcing BTC to drop to $29.1,000. Bitcoin bulls regained pre-drop levels within hours. However, this upswing has been accompanied by a decline in open interest.
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This indicated that speculators with short positions were likely to have closed them during the decline in earnings. It also showed that sentiment remained bearish as there were no bidders present during the slight recovery. Spot CVD also trended further down.
Traders can look for opportunities at both extremes of the nearly month-long range. However, a drop below $28.4k could result in more losses. The next support levels to watch would be $27.3K and $25.5K.
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