Key takeaways
What can be the short-term BTC trader’s game plan?
Traders can use the recent range formation to form their biases. At this time, the rebound from the lows encouraged long positions.
What are the threats that long positions can face?
The OBV hinted that buying pressure was still weak, which meant a return to the range highs might need more time. Another drop to the lows of the range was also possible.
Cryptographic analyst Martin noted that the Bybit exchange experienced strong buying pressure for bitcoin [BTC]. The buyers’ buy/sell ratio increased to 11.6, showing a rapid increase in buyers’ purchase orders.
It indicates aggressive long positioning and could be an early sign of a short-term rally.
This news would be welcome for traders. bitcoin has formed a range that extended from $107.5K to $124.5K, with the mid-range resistance at $116.1K.
These were the key levels to watch until the extremes of the range are convincingly breached.
Will Bitcoin rise to $116.1k this week?
Source: BTC/USDT on TradingView
In the 1-day period, Bitcoin had a bearish structure after falling to $106.4 thousand at the close of the day on October 17.
This was also below the range low, but BTC has since recovered, testing $107,500 as support on Wednesday, October 22.
The moving averages reflected bearish momentum. The RSI was at 48.7, showing that the momentum was bearish, but could swing in either direction in the coming days.
The steady decline of OBV in the daily period showed that sellers have the upper hand in this period. However, traders must remember to trade the range until it is clearly invalidated.
Therefore, any drop to the $107k area would represent an opportunity to buy Bitcoin at the local lows.
Source: BTC/USDT on TradingView
The 4-hour chart showed the beginning of a price bounce over the last ten days. This bounce started from the liquidity pocket below the lows of the $107.5k range.
The RSI and OBV were slowly rising, showing increasing bullish momentum and slowly increasing buying pressure respectively.
The moving averages also formed a bullish crossover and would serve as dynamic support for BTC. In general, there were hopes for a move towards the opposite end of the range at $124.5 thousand.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
