Key takeaways
BTC dipped below $27k once again. However, there are no signs of a follow-through. Where will we go next?
More chop is expected as long as market participants remain on the sidelines.
Get comfortable with dips because buy walls have been moved lower. On the bright side, however, even those selling are covering their positions.
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dives into “Is a True Bull Run approaching and from a look into The Bitcoin on-chain accumulation score is warming up.Bitcoin dipped below $27k, filling the CME gap at around $26.9k. The risk of a deeper drop eased as the price bounced and the Bitcoin Risk Signal dropped below 25 (into the elevated risk signal). This move was likely due to the uncertainty behind the debt ceiling agreement, which tumbled equities - this move is news-driven and BTC reacting to other risk assets.
Bitcoin remains within a narrow range. We are in a low volatility environment (this can change) with thin order books and a lot of sidelined participants (not a lot of selling —> Risk Signal decline). Will whales push us higher again?
It’s been clear that momentum is the main culprit behind the stagnated price action. Momentum has failed to intensify and to print the $1k candles we long. Direction is uncertain as the short-term bullish trends are at play. More chop ahead.
Momentum built up at the low $26k support level ignited the move to the $28.4k local top but quickly faded as buying power eased. Bearish momentum picked up but subsided for the same reason: lack of new players coming in to sell.
BTC failed to attract more demand above $28k to keep the ball rolling.
The perps market paints a similar picture of apathy. Open interest increased as the price rallied, but turned sideways after peaking around $28.4k. This is another sign of how momentum faded.
On the bright side -
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