BTC's Lateral Game

Crypto Compass 70

“Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.” - Peter Lynch

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• BTC is trading around $35.26k, having posted three bullish weekly closes in a row. The coin is now at its highest level since May 2022 and is up more than 112% year-to-date (YTD).

• Over the last two weeks, the BTC price has witnessed high volatility as the overhead supply pressure around the $36k mark is undermining buyers’ attempt to regain higher ground. However, the risk signal remains in 0 level indicating the low probabilities of large correction.

Figure 1: Bitcoin Risk Signal is a proprietary signal that gauges the amount of risk of a major drawdown in Bitcoin price.

• BTC exhibited upward solid momentum on the 4-hour chart, reaching the critical resistance at $35K. It sought to break the critical resistance at $35k, highlighting robust market demand. However, it encountered rejection at this level, resulting in a period of sideways consolidation.

• While the upward movement temporarily slowed due to existing supply and selling pressure, a bearish divergence between the price and the RSI indicator suggests the potential for a short-term retracement. However, if demand surpasses supply, an imminent breakout will likely lead to a robust price surge. 

Figure 2: 4H BTC’s Price Evolution with Cipher B, RSI and ATR indicators.