The trading activity of Bitcoin (BTC) has been relatively calm in recent days after reaching $92k in early February. This period of low volatility may puzzle traders looking to make short-term gains.
Based on technical analysis, the current market conditions suggest that a major price movement might not occur in the immediate future. However, there are still potential trading opportunities worth considering.
Currently, indicators point towards a possible uptrend with Bitcoin’s price aiming to reach $94k in the coming days.
Bitcoin’s Stability around the $95.5k Level
As of now, Bitcoin is approaching the 0.25 level within its trading range. The 25% and 75% levels typically act as either support or resistance, although they are not as significant as the midpoint level.
The 4-hour Relative Strength Index (RSI) has fallen below the neutral 50 mark, signaling a shift towards bearish momentum. Additionally, the market structure suggests resistance between $98k-$99k in recent weeks.
With low trading volume impacting the On-Balance Volume (OBV) indicator, the recent price decline towards $95k-$95.5k had limited volume support.
Looking at the weekly liquidation heatmap, the $94k region appears to attract significant trading activity. Furthermore, the $99k level presents an important liquidity point going forward.
In the short term, a bearish trend could push Bitcoin’s price down to $94k before potentially bouncing back towards $99k.
Analyzing the 24-hour chart supports this view, with a higher likelihood of Bitcoin testing the $95.2k level, a key area marked by substantial liquidation levels, rather than $97.8k.
This temporary dip could set the stage for a move towards $94k followed by a rebound, aligning with the anticipated price action for Bitcoin in the upcoming week.
Disclaimer: The information provided is based on personal opinion and should not be construed as financial advice, investment guidance, or trading recommendations.