Key Points
- Bitcoin’s H4 swing structure indicates a bearish trend with potential trading opportunities.
- A short-term dip could lead to a rebound towards $99k.
Bitcoin’s Current Trading Scenario
Bitcoin [BTC] has experienced a decrease in trading volume and volatility since the retest of $92k earlier this month. This lack of momentum may confuse swing traders.
Technical analysis suggests that a significant movement may not occur this week, but there are still potential trading opportunities. The current price action and liquidation heatmap hint at a potential move to $94k.
Bitcoin’s Support and Resistance Levels
At the moment, Bitcoin is moving towards the 0.25 level within its range. The 25% and 75% levels often act as support or resistance, but they are not as robust as the mid-range level.
The 4-hour RSI has fallen below neutral 50, indicating a momentum shift. The swing market structure on this timeframe is bearish, with the $98k-$99k zone acting as strong resistance over the past fortnight.
Low trading volume in recent days has caused the OBV to remain relatively stagnant. The recent downward price movement, supported by weak volume, suggests it may stop at $95k-$95.5k.
The 1-week liquidation heatmap points to the $94k area as a strong magnetic zone. Conversely, the local highs at $99k represent a significant liquidity pocket.
The short-term bearish momentum could push the BTC price to $94k before bouncing back to the next magnetic zone at $99k. The 24-hour chart supports this prediction. The price is more likely to hit the $95.2k level, a significant area of liquidation levels, rather than the $97.8k level.
This minor dip could set the stage for a move to $94k and a subsequent rebound. This is the expected price movement for Bitcoin this week.
Please note that this information does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.