Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Bitcoin changed its daily market structure to bullish
- Defense of the $27,000 area is a key factor in determining whether bulls have enough strength to drive prices higher
Bitcoin [BTC] seemed to change his fortunes over the past three weeks. The drop to a low of $24.9k on September 11 was followed by a rally that reached mid-range resistance at $28.5k. The market structure was bullish on the 1-day chart, but can the bulls sustain this pressure?
Read Bitcoin’s [BTC] Price forecast 2023-24
An October 3 Bitcoin price report from AMBCrypto noted that liquidity around the $27k region was an ideal place to revisit prices. The insight from the liquidation graphs turned out to be accurate. The article also showed a move to $29,000 before a drop to $27,000 was possible for BTC, but this scenario did not materialize.
Revisiting a lower timeframe support zone could be followed by another move higher for BTC
Source: BTC/USDT on TradingView
The range (orange) extended from $24.8k to $31.8k. The bullish order block at the low range sparked the rally, and short-term resistance at $26.2k also reversed to support. The next zone of interest was the bullish breaker block from the 4-hour time frame, delineated by the white box.
It extended from $26.9k to $27.5k and was retested as support in the last few hours. It was likely that a bullish reaction would occur in the coming days as the Relative Strength Index (RSI) showed that bullish momentum was back. The structure also favored the buyers.
The On-Balance Volume (OBV) on the daily chart showed little change since April given the relatively low trading volume, but the LTF charts showed the OBV climbing higher. Combined with the price action, it seemed likely that BTC was heading towards $28.5k again. A breakout beyond this level could send the king coin heading towards the range high, but resistance around $30k could be difficult to break.
For lower time frame traders, another dip towards the $27,000 level would provide a good buying opportunity.
The order book data showed significant buying pressure
Source: Mob graph
MobChart data showed a limit buy order of $3.82 million for $27,000 was placed in the last 24 hours. It also recorded a $3.12 million limit sell order of $28.5k, which was set just hours before press time. The proximity of the buy order suggested it was likely that BTC could move higher.
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Evidence from order flow and price action suggested a jump to $28.5k was likely to occur. It is unclear whether Bitcoin can break through this resistance. If it beats $28.5k, the $30k and $31.8k resistance levels would be the next areas of interest.
