Percival
Bitcoin ready for either side!
Since the last high on September 16th until the present, Bitcoin has been in the loading phase. Its dynamics tend to follow this pattern of aggressive rises and consequent lasting corrections. Our Choppiness Index on both the daily and weekly charts is quite unstable (62 and 72 respectively), meaning it urgently needs to enter a trend, suggesting a more aggressive movement to either side of the box. Evidence of this pressure is the 90-day range that Bitcoin has found, with fluctuations ranging around 16% from the maximum to the minimum of the lateral range. The same case happened in August 2023, which preceded more explosive upward movements, but even before they happened, the price cleared all traders of “boring” positions in the opposite direction due to low volatility, a good way to shake up the market. Looking at the short term, the short-term SOPR is in a balance zone below 1, but compared to August 2023 we have a test zone at 0.97, currently at 0.99 (still without fear in the air) highlighting the possibility of sudden movements up and down causing liquidations and some short-term panic. Our first floor will be the Short Term Holders Cost Base located at $92K, if the buying force is unable to fully sustain this attack then the ground floor will be located between $80K and $89K, coinciding with the EMA 200. The possibility of false moves before the bull run is strong, many breakout traders are positioned in these zones, and the sovereign market tends to blow up these positions and return to the expected course!