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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- If BTC can cross the $38,000 mark, traders can maintain their bullish expectations.
- The liquidity charts suggested that a reversal could take BTC to $35,000 or lower.
Bitcoin [BTC] maintained its bullish market structure on the price chart. The $37.5k resistance had not yet been defeated, but BTC’s uptrend was still in play. In other news, BTC’s hash rate hit a seven-day high.
AMBCrypto noted that miners were selling and that the miner balance had fallen dramatically in recent weeks. Can this selling pressure tip the balance and force a turnaround?
The trendline support has strong defenders
Source: BTC/USDT on TradingView
Over the past three weeks, BTC has formed a trendline support (green) and has tagged it multiple times. Each time, the bulls have managed to buy the dip and force prices back up.
Moreover, the structure remained bullish, although a move below $34.8k would change that.
The RSI stood at 57 and has fallen over the past ten days. Although the momentum waned, the bears still did not have the advantage.
On-Balance Volume also slowed, but did not break the uptrend.
Local highs around $38k could be taken out before a move downside. Expectations of a price drop would become stronger with a price move below the trendline support.
To the north, $41k-$43k would be a target if BTC rises above $38.5-$38.7k.
The price is attracted by liquidity and could form a bandwidth
Source: Hyblok
Using the past seven days as a look back period, the heatmap of liquidation levels was plotted. AMBCrypto’s analysis of this data alongside the technical perspective showed that a move to $38k was very likely.
This was due to the current bullish bias in the charts, the strong trendline support and the huge amount of liquidity at $37.9k-$38.2k.
Read Bitcoins [BTC] Price prediction 2023-24
If BTC were to move into this zone but fail to close a four-hour trading session above $38,000, a reversal would become more likely.
In that case, a move south to $35,000 could begin in search of the next liquidity pool. The formation of a range would be made clear if BTC were to drop to $33.8k and then bounce.
