Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- BTC consolidated recent losses above the 50% Fib level ($26.7k).
- Bullish sentiment improved after the October 12 price drop.
Bitcoins [BTC] the short-term recovery faced a major roadblock at $27,000. The King’s sharp reversal from $28.2k led to a 5% loss in value based on a press-time value of $26.8k during the early Asian session on October 15.
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A recent AMBCrypto award analysis of BTC on October 13 showed that an extended decline in value towards the confluence of the range-low/bullish zone at $25k could provide a buying opportunity.
But a spike in short liquidations at a 50% Fib level of $26.7k since October 12 delayed the above projection.
Will Bitcoin Sellers Lower the Price?
Source: BTC/USDT on TradingView
BTC’s extended price drop on October 11 created a price imbalance at $26.9k – $27.2k (red). The area has been a crucial short-term hurdle in recent days.
Furthermore, the confluence of the 50-EMA (Exponential Moving Average) price disequilibrium area and the 61.8% Fib level ($27.1k) could entice late sellers into the area. If so, a crack below the 50% Fib level ($26.7k) could take BTC to $26.3k, or into the low $25k range.
However, a convincing bullish move above $27.2k could confirm a near-term recovery.
Meanwhile, demand in the BTC spot market improved, as evidenced by the rising OBV. However, wavering buying pressure and limited capital inflows, reflected in the RSI and CMF operating below key thresholds, are present. It could undermine near-term bullish efforts above $27.2k.
Late BTC sellers will be punished
Source: Hyblock Capital [BTC Liquidation Level]
Late sellers were penalized, according to Hyblock Capital’s liquidation data. The negative Cumulative Liquidation Levels Delta (CLLD), between October 11 and 15, showed that more short positions were liquidated during the same period. The negative CLLD also implied a mild bullish bias.
Read Bitcoin [BTC] Price prediction 2023-24
Moreover, liquidity was on the positive side, as shown by the liquidation profile (right side of the chart). Key liquidity levels were $26.9k, $27.2k, $27.8k and $27.98k (areas marked by larger circles).
However, the $27.2k level was interesting due to the confluence with 50-EMA, the 61.8% Fib level and the liquidation level. Thus, BTC’s short-term recovery could face headwinds around $27,000.