Key Points
- Bitcoin is currently testing crucial support levels, hinting at a potential breakout or pullback.
- NVT Golden Cross and Taker Buy/Sell Ratio indicate overbought conditions and moderate buying pressure.
Bitcoin, the world’s largest cryptocurrency, is currently valued at $97,183, indicating a modest increase of just under 1% in the past 24 hours.
The 111-day moving average has marked the $93,400-level on the charts, a historically significant support level that could determine Bitcoin’s next move.
Bitcoin’s Price Consolidation
At present, Bitcoin is consolidating below the $101,900 resistance zone. Despite several attempts, Bitcoin has failed to maintain a price above this level in recent weeks, leading to the formation of a symmetrical triangle, indicative of potential significant price movement.
Should Bitcoin break above $101,900, it could surge towards higher resistance levels, initiating another rally. However, if it fails to break this resistance, it could pull back to the $93,400 and $97,170 support zones.
Indicators to Watch
The NVT Golden Cross indicator for Bitcoin has increased by 28.21% over the last 24 hours, suggesting that Bitcoin may be entering overbought territory. However, this indicator alone may not be enough to predict an immediate reversal.
The Taker Buy/Sell Ratio, which rose by 0.95% in the last 24 hours, indicates a slight increase in buying pressure. If this trend continues, Bitcoin may see upward momentum on the charts. Conversely, if sell pressure increases, Bitcoin could face a reversal.
Bitcoin’s liquidation heatmap shows a significant concentration of liquidations around the $93,400 support level and the $97,170 resistance. If Bitcoin falls further, liquidations could accelerate, sparking a potential rebound. Alternatively, a push above the $97,170 resistance may trigger long liquidations, increasing upward price pressure.
Given the liquidation heatmap and current market conditions, Bitcoin is more likely to test its support, before moving decisively. Therefore, Bitcoin’s next move will be a test of its key support levels, with potential for a rebound or a breakout soon after.