Bitcoin continues to face challenges following a significant liquidation event this month. The enthusiasm in the market has diminished, with BTC stabilizing around $111,000 as traders exhibit caution.
Technical Analysis
Daily Chart
On the daily chart, BTC is just above the critical support level of $110,000, coinciding with the pivotal 200-day moving average, while the 200-day moving average poses a resistance level above at about $116,000. A fall below the $110,000 zone could lead the market down to $101,000, within the lower boundary of a large descending channel. Currently, the RSI is around 42, indicating neutral momentum, which showcases a standoff between buyers and sellers. Without Bitcoin reclaiming $116,000 with considerable volume, the potential for a broader uptrend may be jeopardized.
Bitcoin Daily Chart
4-Hour Chart
The 4-hour chart indicates a tight range between $110,000 and $116,000 after a significant downturn. The $110,000 level continues to act as a demand zone, yet frequent tests of this level have weakened its reliability. Resistance remains at $116,000, which has hindered recovery attempts in recent days. The RSI appears stable near 40, suggesting a balance in the 4-hour timeframe, but the absence of momentum raises the risk of a breakdown if sellers regain control.
Bitcoin 4 Hour Chart
Sentiment Analysis
Futures Open Interest
The open interest across exchanges has drastically decreased following the recent downturn, indicating a notable decline in speculative activity. Traders are refraining from taking bold positions after being liquidated during the last downturn. This decrease in leverage signals that the market is reassessing, but it also points to a lack of confidence for any strong bullish momentum in the short term. Investors are exhibiting fragile sentiment, where fear outweighs greed, and many are waiting for clearer signals before re-entering long positions.
Bitcoin Open Interest
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