Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Bitcoin fell into a higher timeframe demand zone and witnessed a minor rebound in the past few hours.
- Bulls lacked strength in the market in the near term.
Bitcoin [BTC] saw a rough drop in the price charts last week, reaching $25.2k. A recent report examined the implications of BTC flows in and out of exchanges, noting that a widespread sell-off may not follow.
Read Bitcoin [BTC] Price Forecast 2023-24
At the time of writing, Bitcoin was trading just above a higher timeframe interest area. While selling pressure has eased remarkably lately, it didn’t mean a rally was imminent.
Bitcoin’s price action over the past few days showed that a price increase was possible
![Bitcoin [BTC] shows near-term bullish promise: is this the start of a recovery?](https://statics.ambcrypto.com/wp-content/uploads/2023/08/PP-1-BTC-price-4.png)
Source: BTC/USDT on TradingView
Bitcoin’s trend was solidly bearish on the 4-hour chart. But in the past 24 hours, this outlook has begun to change. The most recent lower high was $26.6k, highlighted in orange. BTC bulls managed to close a four-hour trading session above this level, achieving a bullish market structure break in this time frame.
A look at the daily chart showed that things were still bad for the buyers. However, the $25.6k zone was highlighted in cyan to indicate the presence of a bullish order block where the mid-June rally started.
Therefore, a retest of this zone was ideal for traders with a shorter time frame looking to go long. The recent structural break suggested that an upward move was likely. The RSI climbed back above the neutral 50, but the OBV saw only a small rebound in the past 24 hours.
The Fibonacci retracement levels (yellow) are plotted based on the free fall BTC saw last week. This revealed that the USD 28.3k and USD 29.1k levels could be tested as resistance. The $28.5k level was also significant.
The negative funding rates showed that market biases were bearish
![Bitcoin [BTC] shows near-term bullish promise: is this the start of a recovery?](https://statics.ambcrypto.com/wp-content/uploads/2023/08/PP-1-BTC-coinalyze-2.png)
Source: Coin analysis
When Bitcoin rose from $25.6k to $26.4k, Open Interest showed no noticeable upward trend.
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Instead, as BTC bottomed out at $26.6k and fell to $26.2k, the OI saw a sharp drop, suggesting that longs from lower made gains in the near-term area of interest.
This indicated a lack of bullish belief from market participants over the past 24 hours that a move towards $28,000 could occur. The spot CVD also increased along with prices, indicating that some demand was present.