On May 24th, Bitcoin again got rejected at $30,600 levels creating a strong resistance level at a similar level.
With the rejection at the $30,600 zone, the asset is now trading under $30,000 and has broken below the 100-day MA line under the hourly time frame chart.
The price action of bitcoin since the middle of the second week has been tightly moving between the range of $28,650 and $30,600. Therefore in between those ranges, the Fibonacci extension tool can be used to understand potential price targets for additional support and resistance zones.
Highlighting the scenario of trading ranges, the scope of trading amongst the market conditions is expected to be less risky. The chances of predicting price moves based on natural support and resistances become easy.
Therefore through the observation of Fibonacci levels, some notable levels at 38.2% and 61.8% are $29,500 and $30,000 respectively.
Also, the RSI marks are currently sitting at 37 indicating a bearish view in the current play of the market forces but the rising slope of the RSI since May 10th might indicate a gradual break for range-bound Bitcoin.
Bringing in the data readings from other indicators like MACD, the signal line has surpassed the MACD line from the bottom and is making its way up. This indicates a potential price break for the range-bound Bitcoin in the near future.
Additionally, a better way to gauge potential bitcoin price influence is observing Bitcoin Futures Open Interest volumes.
The chart has been sourced from the block, the open interest for Bitcoin Futures trends shows a decrease in the open interest volumes. This indicates the relatively lower trading volumes. Therefore this shows the price influence over bitcoin has been the result of the global economic pressure due to the established correlation of crypto markets with macroeconomic events.
