Bitcoin has begun with a decent correction after hitting the local highs close to $98,000 and reached one of the crucial support zones
Bitcoin (BTC) price has begun a decent correction after hitting the local highs close to $98,000 and reached one of the crucial support zones. The current trade set-up hints at both the possibility of a bullish rebound and a bearish continuation, which raises scepticism over the upcoming BTC price rally.
The past weekend was pretty bearish for the Bitcoin price rally as the token plunged below $94,000. The recent rise to the local high of $97,895 from the lows of $89,000 saw massive attention on the token. However, the volume is still seen to be remaining within a range, which suggests the bulls are passive. But they are offering enough support at $94,000 that may uplift the tokens within the bullish range in a short while from now.
Breaking the $95,000 support range was assumed to drag the BTC price to $92,000. But the ongoing price action shows the strength of the bulls, and a rebound seems inevitable.
It is also seen that the Bitcoin price is known to fill the CME gaps, which have been formed around the current price levels. The lower gaps usually trigger a strong pullback, while the gaps at the upper levels push the token higher. However, the price faces a reversal after filling the gaps.
The current trade set-up shows a gap on either side of the price, which is keeping the upcoming price action in an ambiguous state. The price is likely to continue moving inside a broader range.
Currently, two gaps have been formed close to the current price, one between $96,400 & $97,600 and the other between $92,500 & $91,700. If the bullish trend is in place, the BTC price may focus on filling in the lower gap first, which may be accompanied by a massive bullish rebound. This suggests the price could be primed to drop below $92,000, which could be the local bottom of the persisting pullback.
Also, if the price triggers a long trade, it may reach the local highs at $98,000, where we can see some LTF liquidations after a reclaim of the previous range highs. However, the BTC OBV daily trend remains bullish. So, as long as this remains the case, the pullback may not be too deep.
Moreover, a volatile week ahead with FOMC and Coinbase (NASDAQ:COIN) earnings scheduled later this week.
