- Bitcoin seemed to be consolidating below $101,900, forming a symmetrical triangle for potential breakout or reversal
- NVT Golden Cross and Taker Buy/Sell Ratio hinted at overbought conditions and moderate buying pressure
Bitcoin [BTC], at the time of writing, seemed to be testing crucial support levels, with traders now closely watching for signs of a potential breakout or pullback. Valued at $97,183, the world’s largest cryptocurrency hiked by just under 1% in the last 24 hours.
On the charts, the $93,400-level has been marked by the 111-day moving average. This level has historically served as a key support, and its behavior could determine Bitcoin’s next move. Will Bitcoin hold steady at this threshold, or is it poised for another surge?
What’s next for Bitcoin’s price?
Right now, Bitcoin is consolidating below the $101,900 resistance zone. Despite several attempts to break this level, Bitcoin has been unable to sustain a price above it in recent weeks. As a result, Bitcoin has been forming a symmetrical triangle – A pattern that often alludes to significant price movement.
Should Bitcoin break above $101,900, it could quickly surge towards higher resistance levels, potentially starting another rally.
However, failure to break this resistance could lead to a price pullback, testing the $93,400 and $97,170 support zones. Therefore, traders will need to monitor these levels closely for any indication of a breakout or a reversal.
Source: TradingView
NVT Golden Cross – Should traders be cautious?
Bitcoin’s NVT Golden Cross indicator climbed by 28.21% over the last 24 hours, as per CryptoQuant analytics. Such a change means that Bitcoin may be entering overbought territory. Especially since the NVT’s values had exceeded 2.2 too.
Historically, such levels have often signaled local tops, which could be followed by price corrections.
Nevertheless, Bitcoin could continue its bullish momentum if demand remains strong. So, this indicator alone may not be enough to predict an immediate reversal. Therefore, while caution is necessary, Bitcoin could also continue its hike, depending on the strength of the market.
Taker buy/sell ratio – Is buying pressure building?
The Taker Buy/Sell Ratio rose by 0.95% in the last 24 hours too, hinting at a slight uptick in buying pressure. Although the ratio was below 1, it suggested that there is more buying than selling activity.
If this trend continues, Bitcoin may see upward momentum on the charts. However, if the sell pressure intensifies, Bitcoin could face a reversal, testing its key support zones once again. Therefore, market sentiment will play a crucial role in determining Bitcoin’s next move.
Source: CryptoQuant
What do liquidations reveal?
Bitcoin’s liquidation heatmap revealed significant concentration of liquidations around the $93,400 support level and the $97,170 resistance. If Bitcoin falls further, liquidations could accelerate, sparking a potential rebound.
On the other hand, a push above the $97,170 resistance may trigger long liquidations, increasing upward price pressure.
Source: Coinglass
At press time, Bitcoin remained close to the crucial level near $97,170, with multiple indicators hinting at possible volatility. The NVT Golden Cross seemed to warn of overbought conditions too, with the Taker Buy/Sell Ratio underlining moderate buying pressure.
Given the liquidation heatmap and current market conditions, Bitcoin is more likely to test its support, before moving decisively. Therefore, Bitcoin’s next move will be a test of its key support levels, with potential for a rebound or a breakout soon after.
