Bitcoin’s remarkable week-long pump flips the $29.4k price level to support, but a pullback could be imminent.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- BTC continued its strong bullish rally, as it flipped the $29.4k price level to support.
- However, there were signs of an imminent pullback before a continuation of the rally.
Bitcoin’s [BTC] remarkable week-long pump extended past the $29.4k resistance level, as bulls ramped up the buying pressure. The bullish rally began on 15 October and as of press time, BTC registered 11.4% gains, rising from $26.8k to $29.9k.
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A BTC price report by AMBCrypto on 19 October highlighted the possibility for more gains after the king coin climbed to the $28.5k price zone. This analysis was validated over the past 48 hours, with buyers making another strong push from the $28.5k level.
This saw BTC flip the $29.4k level to support and underlined the bullish prospects for sustained gains above $30k.
Bulls cleared another major obstacle
The Moving Average Convergence Divergence (MACD) indicator highlighted the intensity of the current bullish rally. It posted a bullish crossover above the zero mark to signal a strong bullish bias.
Nevertheless, the Chaikin Money Flow (CMF) showed that capital inflows were subdued, as it hovered around the zero mark. With the Relative Strength Index (RSI) hitting the overbought zone along with muted capital inflows, a minor pullback could be experienced in the short term.
This could see BTC retest the $29.4k support in the coming days before a continuation of the bullish uptrend, with $31k the long-term target for buyers.
On the other hand, a sharp rejection at $30k could reintroduce bears back into the market with a downward move. This is a possibility if the $29.4k support doesn’t hold on a retest.
Longs and shorts locked in a tight price battle
Read Bitcoin’s [BTC] Price Prediction 2023-24
The exchange long/short ratio showed that both market participants were active in the market, with neither buyers nor sellers dominating yet. The marginal difference between longs and shorts could determine a price pullback or an extension of the bullish rally.
With price approaching significant liquidation levels, traders should exercise caution before opening new positions. The information on the price charts as of press time suggested that BTC was still bullish. However, sellers were actively searching for short positions.
