Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
alt HD: Bitcoin witnesses HTF accumulation, but short-term bearish pressure, what could happen this month?
- Bitcoin’s rejection at $28.5k saw it drop below the $27k support
- The lack of demand in the short term could further increase losses
Bitcoins [BTC] The drop below the $27,000 mark on October 11 did not faze the bulls. Instead, a large number of traders chose to go long in a strong show of conviction. The leverage ratio of the king coin has also increased in recent days.
Read Bitcoin’s [BTC] Price forecast 2023-24
A recent Bitcoin price report from AMBCrypto highlighted the importance of the $27k level and the impact that September CPI data could have. The support level has been lost over the past 24 hours, and leveraged traders cannot take BTC out of this bearish put on their own.
A drop to the lows in the range could provide a buying opportunity
Source: BTC/USDT on TradingView
The daily timeframe chart showed that BTC has a bullish structure, with the recent higher low at $25,990. A session close below that mark would shift the structure, but the presence of the bullish order block and low range could see Bitcoin recover.
Still, at the time of writing, further losses seemed likely. The lower periods showed strong bearish momentum. Even on the one-day chart, the Relative Strength Index (RSI) fell below neutral 50, indicating that a shift had occurred. The Chaikin Money Flow (CMF) was below -0.05, reflecting significant capital outflows from the market. On-Balance Volume (OBV) rebounded in September, but trended lower last week.
Therefore, a move into the $24.8k-$25.8k region could provide an ideal buying opportunity. The void would be close, around $24.6k or slightly lower. Take-profit targets include the $28.5k mid-range.
Statistics on the chain indicate a phase of accumulation from the end of July
Source: Santiment
BTC’s average coin age has been in a strong uptrend since July, showing that holders refused to move their coins. The supply on the stock exchanges also fell steadily. Both statistics reflect accumulation. The market value to realized value ratio (MVRV) pointed towards a slightly undervalued asset.
Source: Coinalyse
Still, short-term market sentiment was bearish. The Open Interest (OI) saw an increase in the number of short sellers on October 11. While the OI has been relatively flat as price has trended lower, the Spot Cumulative Volume Delta (CVD) has not.
How much is 1, 10 or 100 BTC worth today?
The CVD emphasized that sales volume was dominant last week. If this indicator does not change its trajectory, a recovery may not be on track. Lower timeframe traders can use a price increase but a weak CVD to look for scalp shorting opportunities.
