Short-Term Retracement Looms as BTCUSD Remains in an Overbought State

BTCUSD remains in an overbought state as the bears prepare to storm the market. The overall bullish trend has been since October 2023. Currently, the trading range of BTCUSD remains within the $34760.00 swing low and $49100.00 swing high.

Following the invalidation of the $45000.00 swing high on January 2, 2024, BTCUSD surged to establish a higher high at $49100.00, showcasing the cryptocurrency’s inherent volatility. The subsequent market downturn led to a significant slump, finding stability within the discount zone. This pronounced crash persisted until a sell-side liquidity grab occurred within a fair value gap, shedding light on intricate market dynamics. While the overall trend is bullish, a short-term retracement to the downside currently looms as the market’s condition remains in an overbought state.

BTC Key Levels

Demand Levels: $37800.00, $31900.00, $24900.00
Supply Levels: $43100.00, $46000.00, $49100.00

What are the Indicators Saying?

The technical indicators play a crucial role in interpreting these movements. The Moving Average now signals a resumption of BTCUSD’s bullish trajectory, suggesting further upward momentum. Simultaneously, the Stochastic Oscillator points to a potential short-term retracement of around $43100.00, offering the bears an opportunity to enter the market.

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