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BTC seems to have hit a big order block as it moved near the $97,000 and has already rejected multiple attempts to move above this area in the past few days.
The volume profile shows that trading volumes at this price zone have been quite strong throughout the year, emphasizing its importance for market participants and for Bitcoin’s short-term outlook for that matter.
If Bitcoin retreats from this area, it could be pushed down to its 21-day EMA, which currently sits at $89,900, meaning that there is a high chance that BTC could drop below $90K in the near term.
Momentum indicators were already a bit stretched as BTC neared this key area of resistance. The Relative Strength Index (RSI) hovered near overbought levels in the past few days while the MACD’s histogram has been trending lower for five days in a row.
BTC Outlook is Still Bullish
Bitcoin’s outlook is bullish in the mid-term after a bullish crossover between the 21-day EMA and the 200-day EMA.
The last two times this happened, Bitcoin’s price has reached new all-time highs three to six months after. Hence, if the price pulls back, this could be a great opportunity to buy BTC at a point when technical indicators seem to be favoring bulls in the long run.
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