Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Bitcoin consolidated recent recovery gains above $34,000 at the time of writing.
- Significant purchase orders were $33,000; Sell orders were placed for $35,000 and $40,000.
Bitcoin [BTC] entered a range formation on October 25 and consolidated gains above $34,000. This margin persisted prior to the Fed’s decision on November 1 and could expose King Coin to mild price volatility.
Read Bitcoins [BTC] Price prediction 2023-24
A recent BTC price prediction projected a move to $36k due to open liquidity of $35.9k. The idea had yet to materialize at the time of writing, as BTC failed to break above $35.2k. With the Fed decision looming, what can traders expect next week?
Important BTC Price Levels to Consider
Source: BTC/USDT on TradingView
Liquidity on the 12-hour chart was $30.9k – $32.8k (white). Above that was a crucial overhead and a bearish order block formed in May 2022 at $38,000-$40,000 (red). However, the immediate hurdle for bulls was the recent and new high of $35.2k.
Noteworthy: over 99% of interest rate traders surveyed expected a Fed interest rate pause in November. So, BTC could witness a slight rebound. The overhead resistance to watch out for was $35.2k, $37.7k and a roadblock of $38k – $40k.
But negative sentiment due to an unlikely Fed rate hike could expose BTC to a downturn. The liquidity area of $30.9k – $32.8k (white) will be a crucial support in such a bearish scenario.
The RSI (Relative Strength Index) and CMF (Chaikin Money Flow) values were positive. It indicated that BTC witnessed massive buying pressure and capital inflows in recent days.
Purchase orders for $33,000; Major sales orders of $35k/$40k
Source: Mobchart (BTC buy and limit orders from Binance Exchange on October 29)
Mobchart data showed a huge buying interest under $34,000. So, BTC could try to defend the psychological level of $34,000 in the coming days. Notably, at the time of writing, more than 300 BTCs have placed a buy order for $33,000 on Binance Exchange.
On the sell side, $35,000 and $40,000 recorded significant sell limit orders. At the $35,000 level, there were 218 BTCs for sale on the Binance Exchange at the time of writing. Interestingly, at the $40,000 level, there were also 387 BTCs for sale.
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It meant that BTC’s movement above $35,000 could become challenging if more players lose their holdings at this level.
At the same time, a move below $33,000 could be far-fetched given the huge demand. The level was within liquidity on a chart, reinforcing it as a crucial demand level.