Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The recent decline eased after a daily bullish order block and a May low.
- Coinglass’ liquidation chart highlighted $25.7k and $26.4k as key liquidity levels.
According to technical indicators on the lower time frame charts, Bitcoins [BTC] The short and medium term outlook is still not good. Moreover, over 80% of interest rate traders surveyed are leaning towards a possible rate hike by the Fed at the next FOMC meeting in September. This begs the question: Are additional losses likely?
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The recent price decline eased to a previous May low of $25.8k and a daily bullish order block (OB) of $24.8k – $26.0k (cyan). However, a solid recovery has remained elusive as bulls and bears battle for $26,000.
The H4 50-EMA retested as resistance
Source: BTC/USDT on TradingView
The zoomed-in 4-hour chart indicated that current price levels coincided with the May range low. BTC fluctuated between $25.8k and $28.3k in May, with the mid-range approaching $27k.
Interestingly, the May range low above corresponded to a daily bullish OB (cyan) and $25.2k support. Retesting the low in the range could have led to a rise to the mid-range, close to $27k, but the price was rejected at the 50-EMA (Exponential Moving Average) of $26.5k.
Thus, the mid-range and 50-EMA are crucial resistance levels for the next few hours/days. If sellers were to crack the confluence area, cyan, BTC could move lower, with the next support being a weekly bullish OB of $21.45k – $23.45k.
Meanwhile, the RSI improved, but later retreated below 50 and faltered below – buying pressure was subdued. Similarly, the CMF fluctuated around the zero mark, underlining the hesitant capital inflows into the BTC market.
Why $25.7k and $26.4k Could Be Crucial Levels
Source: Coinglass (BTC liquidation card on Binance Exchange)
A look at Coinglass liquidation card throw off a number of potential key levels to be considered in the near term. For perspective, the liquidation chart depicts the risk levels to the cryptocurrency futures trading market and is based on past price trends.
Each liquidation bar indicates how much a position can be affected when the price hits the level. Conventionally, higher ‘liquidation bars’ usually indicate stronger price reactions due to liquidity increases.
Read Bitcoins [BTC] Price Prediction 2023-24
Because the spot and futures markets have intricate influences, the liquidation chart could provide nuanced insights into potential spot prices.
Ergo, the key levels in this particular Binance Exchange BTC liquidation chart are $26.4k and $25.7k on the daily time frame. The $25.7k is close to the low while $26.4k is close to the H4 50-EMA resistance. So the two levels were important price levels to watch in the near term.