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Bitcoin [BTC] unable to breach $29.8k: Where does the next support zone lie

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A bearish order block on the 2-hour chart at $28.8k rebuffed the bulls over the past 24 hours and forced a retreat to $28.3k. Can another move down follow?

Bitcoin unable to breach $29.8k, here's the next support zone to watch

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Short-term selling pressure saw Bitcoin fall beneath the $29k mark. 
  • The bullish order block from 2 May could see a positive reaction from the bulls.

At press time, Bitcoin [BTC] faced intense selling pressure beneath the $30k round-number resistance. While the bulls have not yet flipped this area to support, they have also slowly pushed BTC upward since mid-April. The daily timeframe market structure was bullish, but the lower timeframes showed a drop in prices was likely.


Read Bitcoin’s [BTC] Price Prediction 2023-24


While the higher timeframes can give bulls some hope, on the lower timeframes, the sellers had a clear advantage. The rejection at a bearish order block meant that the next bearish target was below $28k.

The break in structure handed the short-term bears a strong advantage

Bitcoin unable to breach $29.8k, here's the next support zone to watch

Source: BTC/USDT on TradingView

A bearish order block on the two-hour chart was highlighted in red in the chart above. It was respected over the past two days as BTC bulls were unable to drive prices past the $29.6k level. The rejection saw BTC fall to $28.6, thereby breaking the market structure and flipping it bearish.

The Awesome Oscillator formed green bars on its histogram over the past 12 hours to indicate waning bearish momentum. This corresponded to BTC’s bounce from $28.6k during this time. At the time of writing, Bitcoin was changing hands at $28,871, measuring a near 2% bounce from the $28.3k local lows.

The OBV saw a sharp fall over the past two days to show strong selling pressure. Combined with the break in the market structure, it was likely that Bitcoin was headed lower once more. Beneath the $28.7k support sat the bullish order block at $27.7k. A retest of this region can provide a bullish reaction on the price charts.


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Open Interest showed bearish sentiment was rising

Bitcoin unable to breach $29.8k, here's the next support zone to watch

Source: Coinalyze

The funding rate dipped into negative territory on 6 May and ventured there once again at the time of writing. Meanwhile, the Open Interest has been falling following BTC’s failure to breach the $29.8k region on 6 May.

The break in the lower timeframe market structure was a development that could see BTC fall once again. The negative funding rates showed short positions were in the majority and the OI also pointed toward short-term bearish sentiment.

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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