Optimism flips range-high to support – Should you long it?
Optimism could target $1.50 or more ahead of the Fed decision, presenting a likely extra gain to bulls.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- OP flipped the previous range-high of $1.350 to support
- Considerable sell limit orders were placed at $1.450 and $1.500
Optimism [OP] consolidated recent recovery gains above $1.350 ahead of the Fed decision. Last week’s (11-17 September) recovery tipped OP to mount above the previous range-high of $1.350.
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At press time, Bitcoin [BTC] had reclaimed the mid-range of $27k. It was poised for the range-high of $28.3k or more if the Fed decision on 20 September is favorable to buyers. Such a move could tip OP for more gains.
Will OP retest $1.5?
Last week’s recovery was briefly held at the previous range-high on 12 and 13 September. However, OP flipped the level to support afterwards. The bulls defended the range-high as support at press time and could aim for the next target level of $1.5.
If so, such a move could present an extra 7% gain from the $1.40-level. So, going long on the asset could present modest gains in such a scenario. Above $1.50, the next resistance level is $1.590, which aligned with a weekly bearish order block (OB) of $1.55 – $1.77 (red).
Conversely, a drop below the support of $1.350 will invalidate the above bullish bias. Such a reversal could ease at the mid-range or range-low ($1.30).
However, key price chart indicators, RSI and CMF, were inclined towards a bullish bias. Notably, the RSI rebounded at the median level and recorded an uptick. It denoted that buying pressure had improved at press time.
Similarly, the CMF was flat but above zero over the past few days. At press time, it registered an uptick, confirming further substantial capital inflows into OP markets.
Key sell limit orders at $1.45 and $1.50
How much are 1,10,100 OPs worth today?
According to Mobchart, an order book tracking platform, significant sell limit orders were placed at $1.45 and $1.50 (next resistance target), as shown by the bold red lines. On the buy side, buy limit orders were placed at $1.30 (range-low).
The inference from the above is that the price could see a price reversal near the sell limit orders of $1.45 and $1.50, while a drop could see OP rebound at or near $1.30.
