Key Points
- Bitcoin’s bullish bias is strong this week, despite potential volatility and liquidity in the $68k-$69k region.
- On-chain analysis and the 4-hour RSI indicate strong bullish momentum for Bitcoin.
Bitcoin’s bullish bias remains strong this week. The recent dip may be a strategy to create liquidity and increase volatility.
At the time of writing, Bitcoin [BTC] was trading at the range highs at $67. This range has been consistent since mid-April. The momentum of the past few days, particularly the recovery past $65k, has reinforced the belief in further gains.
On-Chain Analysis and Market Sentiment
Despite the bullish sentiment, on-chain analysis suggests that the liquidity in the $68k-$69k region could result in a bearish reversal. The possibility of this scenario playing out remains uncertain.
Crypto analyst CrypNuevo noted that the $69k region had a large cluster of liquidation levels. This could attract prices in the coming days, but may also bring about some volatility.
The analyst suggests that a sharp, quick downward move before this large liquidity pocket is hit could encourage more short positions. It could also create false confidence in traders who are already short, which builds even more liquidity around the $69k region.
Trading Volume and Resistance
The BTC trading volume has been low since Friday. However, the OBV is on the verge of clearing a local resistance level, which could add to the bullish impetus.
The 4-hour chart revealed strong resistance at $69k-$69.5k. However, short liquidations could fuel a surge past this tricky resistance zone.
In conclusion, traders should be prepared for some volatility but continued bullish progress this week.
Please note: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
