Bitcoin remains balanced between buyers and sellers, leading to uncertainty regarding price movements.
The market has shown minor fluctuations, requiring increased trading activity to determine its next direction.
Technical Analysis
By Shayan
The Daily Chart
Bitcoin is experiencing insufficient trading activity in both spot and perpetual markets, resulting in sideways action with low volatility. The RSI indicator around 50 indicates an equilibrium state, with uncertainty prevalent as market sentiment.
For Bitcoin (BTC) to develop a clear directional trend, higher trading volume alongside increased demand or supply is necessary. Despite multiple key support levels, the price is likely to find footing around the $90K threshold and might surge toward the $108K mark.
The 4-Hour Chart
On the 4-hour chart, a robust support region has emerged within the $92.5K-$94.3K fair value gap, which has continually prevented further price decline. This area is filled with demand, effectively stopping sellers’ downward attempts.
This key level aligns with the lower boundary of a prolonged ascending wedge and the short-term bullish flag’s lower trendline, emphasizing its significance as a critical defense zone for buyers. Thus, BTC is expected to encounter increased buying activity at this level, potentially initiating a surge toward the flag’s upper boundary at $98K, with the $108K threshold as the next target.
On-chain Analysis
By Shayan
While Bitcoin’s price action lacks clear directional cues, deeper research into market dynamics is necessary. Analyzing futures market metrics can provide valuable insights into the situation.
This chart illustrates BTC’s open interest metric, which measures the total number of open perpetual futures contracts on centralized exchanges. Despite recent price fluctuations and indecision, open interest has been trending upward, suggesting more activity flowing into the perpetual markets.
If this trend continues, the market may experience a mid-term breakout. However, the direction of this move remains uncertain, requiring additional data for accurate prediction.
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