Bitcoin 24-Hr Volatility Soars, Why Bulls May Win the Battle in the Near-Term

Bitcoin continues to move sideways in a tight range as regulatory pressure in the US mounts with two lawsuits against major crypto exchanges. The number one crypto by market cap may still see crab-like price action, but according to one analyst, bulls may be able to catch a break in the short term.

As of this writing, bitcoin (BTC) is trading at $26,500 with a 2% gain over the past 24 hours. In the past week, BTC registered a loss of 2%. In contrast, the other cryptocurrencies in the top 10 by market cap registered similar price action except for Binance Coin (BNB), which posted a 14% loss over the same period.

Positive outlook for bitcoin price?

According to analyst Ali Martinez, the price of bitcoin could see further gains. During the week, the cryptocurrency has retraced but remained above important resistance.

Despite the unfavorable and uncertain macro conditions and regulatory environment, crypto market investors continue to struggle to determine a clear direction. In this context, Martinez where did it go The following for BTC price using the TD Sequential Indicator, as seen in the chart below:

The TD Sequential is presenting a buy signal on the hourly chart, which could see $BTC rally towards $27,000 – $27,300. Nevertheless, #BTC should avoid an one-hour close below $26,360 as this could lead to a decline to $25,800.

Regardless of forecast, uncertainty can be the most important factor that can make a buy order ineffective. A break above the $27,000 to $27,300 level could signal a positive outlook for BTC traders in the near term.

Conversely, $26,000 and $26,300 remain important supports, as the 200-weekly moving average (WMA) sits around that area. The bulls should defend this average to prevent the price from falling further, possibly to the lows of $20,000.

As a positive sign, the increase in volatility in the previous trading sessions contributed to the clean-up in Open Interest (OI). According to a separate analysis, over $800 million in OI was wiped out as BTC took liquidity in both directions.

Often, when OI is removed and overleveraged positions are closed, the market is less bound to trend in one direction. a pseudonym analyst where did it go,

We have seen a lot of ups and downs in the last 48 hours. In total, we’ve seen over $800M+ in open interest wiped out during this period. Higher leverage has been flown to both sides. Liquidity taken. Up to the spot to determine direction from here.

Cover image from Unsplash, chart from Tradingview