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- The range had not yet crossed as BTC bears failed to break the demand zone below $30k.
- The indicators and volume showed that sellers had a strong advantage and further losses may follow.
Bitcoin [BTC] continued to trade within the same range in which it had been stuck since June 23. The sharp rejection at the highs last week caused the price to drop back to the lows that the buyers have defended so far.
Read Bitcoin [BTC] Price Forecast 2023-24
The range stretched from $29.8k to $31.5k on the card. BTC’s momentum and market structure has been bearish on the lower time chart, but contrarian traders could be rewarded if the bulls can reverse recent losses.
The range remained undefeated, which meant Bitcoin traders could expect a continuation
Source: BTC/USDT on TradingView
A report released last week highlighted that a drop below $30,000 could present a buying opportunity. On July 18, BTC saw a drop to the $29.5k level, which was also the low the price reached on June 30.
At the time of writing, the RSI was below the neutral 50 but formed a hidden bearish divergence. This is when the price forms a lower high, but the RSI forms a higher high, and this indicates a continuation of a downtrend. The OBV also supported this idea as it has sunk lower over the past three days to show bearish dominance.
Still, the indicators are tracking the price action and the price showed good demand below $30,000. Therefore, buyers can hold BTC for the next few days. Their take profit levels are the $30.6k mid range and the $31.5k range highs.
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Short-term bearish sentiment was highlighted in the Open Interest chart
Source: Coin analysis
On July 18, Bitcoin prices fell from $30.2k to $29.7k. During this time, outstanding interest increased by $9.78 billion to $10.24 billion. This was a sign of strong bearish sentiment in the market in the lower time frames.
In addition, CVD in the spot market continued to decline, indicating that selling pressure remained strong. The funding rate was positive, but offered little relief for the bulls. While there are indications of further losses, the range formation should be respected until broken.