Key Points
- Bitcoin has flipped the $67k level to support, hinting at a possible bullish structure.
- The lack of trading volume could potentially disrupt an uptrend.
Bitcoin has shown a potentially bullish structure by flipping the $67k level to support. The cryptocurrency has recovered from the lows of Friday, 31st May, registering a gain of approximately 3.6%.
Despite this, the momentum was less than convincing due to unimpressive trading volume. This raises the question of whether the market is prepared for a rally or if we might witness a prolonged consolidation.
Conflicting Volume Indicators
The rally in late February saw a retracement to $59k in mid-April, which was only the 61.8% retracement level. Since then, Bitcoin (BTC) has shown a positive recovery. The RSI on the daily chart has climbed above neutral 50, signaling a shift in momentum.
However, despite the price’s range breakout, the OBV remained within a range, registering lows from April. This could indicate that the recent gains might be wiped out rapidly due to a lack of buying pressure.
On the other hand, the CMF jumped above +0.05, highlighting significant capital inflows. These volume indicators present conflicting findings. While the bullish bias appears stronger, the lack of trading volume in the past two weeks has weakened the bullish arguments for Bitcoin’s price prediction.
Potential Movement Towards $75k
The large cluster of liquidation levels at $73k-$75.2k could act as a strong magnetic zone for Bitcoin prices. Conversely, the $65.6k region also presents a point of interest.
The lack of trading volume suggests that Bitcoin’s price prediction could be consolidation around the $70k region for this week, or possibly longer. Until the volume expands and prices can breach the $73.5k region, traders and investors can expect a range formation to take hold.
The information provided does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
