Bitcoin: Will Recent Gains Clear the Way to $30,000?

Posted: September 1, 2023

Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.

• Bitcoin has a bullish lower time frame, but key resistances remain strong.
• The price action outlined a key support area near USD 26.5k that is critical for the buyers to defend.

Bitcoin [BTC] posted a gain of 8.5% on August 29 to reach $28.1k, but has since pushed back somewhat. On that day, the market received news that the US Court of Appeals sided with Grayscale in a lawsuit against the Securities and Exchange Commission.

Read Bitcoin’s [BTC] Price Forecast 2023-24

This has been good news for investors and may help foster long-term institutional acceptance. Over the next few weeks, the charts showed significant resistance at the $28.5k and $30k levels.

The recent rejection from USD 28,000 could cause BTC to reach a higher low and move up

Source: BTC/USDT on TradingView

The rebound on August 29 stemmed from a bullish June 14 order block highlighted in cyan. Before that, the price was in limbo at the $26k level, underlining the bearish exhaustion.

In the one-day period, the market structure remained bearish. While it managed to break the $26.6k mark, the more significant lower highs at $29.8k and $30.2k remained unbeaten.

Therefore, it was likely that sellers were lining up in that region, and bulls could have a hard time driving prices above that.

Bitcoin seemed to have formed a range between $24.8k and $31.8k. The mid-range of $28.4k was also a level that could hold back further gains. The RSI stood at 47, showing that momentum has not turned entirely bullish. The OBV did not rise significantly due to the reduced trading volume in recent weeks.

The shift in market structure in the lower time frame has been positive for BTC bulls, and a retest of the $26.6k-$26.8k area could provide traders with a near-term buying opportunity.

Liquidity at $28.5k and $30k meant bulls will need to be cautious as BTC approaches these levels

Source: Mob chart

MobChart data revealed that there were limit sell orders worth 228.5 BTC at the $28.5k level. There was another wall of 375 BTC for sale for $30,000. Therefore, buyers from the $26,000 zone can try to take profits at these levels.

Source: CryptoQuant

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CryptoQuant’s data showed that the BTC flow from the exchanges has increased over the past two weeks. This was a sign of asset accumulation, and was a positive sign in the long run. For traders, however, this does not necessarily mean a long-term low.

Bulls should be wary of the possibility of another move towards $25,000 if they fail to defend the $26.3k-$26.7k region. Aggressive traders can look forward to a retest of this zone and a positive response.