Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- BTC continued its strong bullish rally, reversing the $29.4k price level to support.
- However, there were signs of an impending pullback before the rally continued.
Bitcoins [BTC] The remarkable one-week pump extended past the $29.4k resistance level as bulls ramped up buying pressure. The bullish rally started on October 15 and at the time of writing, BTC gained 11.4%, from $26.8k to $29.9k.
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A BTC price report from AMBCrypto on October 19 highlighted the opportunity for more gains after King Coin climbed to the $28.5k price zone. This analysis was validated over the past 48 hours, with buyers making another strong move from the $28.5k level.
This caused BTC to reverse the $29.4k level to support and underline the bullish outlook for continued gains above $30k.
Bulls have cleared another major obstacle
Source: BTC/USDT on Trading View
The Moving Average Convergence Divergence (MACD) indicator highlighted the intensity of the current bullish rally. It recorded a bullish crossover above the zero mark, indicating a strong bullish bias.
Nevertheless, the Chaikin Money Flow (CMF) showed that capital inflows were moderate and hovered around the zero line. With the Relative Strength Index (RSI) reaching overbought territory, along with moderate capital inflows, a small pullback could occur in the near term.
This could lead BTC to retest the $29.4k support in the coming days before continuing the bullish uptrend, with $31k a long-term target for buyers.
On the other hand, a sharp rejection of $30,000 could reintroduce bears to the market with a downward move. This is a possibility if the $29.4k support does not hold on a retest.
Longs and shorts are engaged in a fierce price battle
Source: Mint glass
Read Bitcoin’s [BTC] Price forecast 2023-24
The long/short ratio showed that both market participants were active in the market, with neither buyers nor sellers still dominating. The marginal difference between longs and shorts could determine a price decline or an extension of the bullish rally.
With the price approaching a significant liquidation level, traders should exercise caution before opening new positions. The information on the price charts at the time of writing suggested that BTC was still bullish. However, sellers were actively looking for short positions.