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- Bitcoin is up 0.62% in 24 hours but down 0.27% this week as trading volume hits $69.91 billion.
- Only 6.5% of weekly candles in 18 months broke above the high from this setup before the week ended.
- The narrow weekly range suggests price energy is still building for a potential move before the candle closes.
Bitcoin is currently trading at $118,351 and has increased by 0.62% in the last 24 hours. The volume of trading per day has also increased by 9.57% to $69.91 billion. Nevertheless, Bitcoin is currently down by 0.27% in the last seven days. An increase in volume and active positioning is a sign that traders are anticipating volatility by the end of the weekly candle.
Source: CoinMarketCap
Crypto analyst Jip Molenaar highlighted that his second entry had been met with resistance. He responded by adjusting his stop loss and remained biased long. His caution is backed up by historical stats. In the last 18 months, only 6.5% of weekly candles exceeded the weekly high based on a similar position and then closed.
Source: X
FOMC Weeks Disrupt Market Trends
This data argues in favor of a bearish trend. Nonetheless, this week also involves an event by the FOMC, which tends to disrupt normal market trends. The first pivot of the weekly candle frequently fits on Wednesday, during such weeks. According to Molenaar, bulls need to hold Wednesday low to ensure the bullish argument holds.
He is still trading on the long-term wick data. The large wicks on the weekly candles occurred in 89.2% of the last four years. This indicates that the existing high of last week is a soft pivot point. It can be expanded along the price in both directions.
Source: X
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Still more impressively, every one of the 100% of weekly candles within that period enjoyed a larger-than-this-week range. This means unrealized price dynamism. Even though it is unlikely, a significant turnaround is statistically feasible.
Looking at the high to low range, 68% of prior candles were unable to exceed the high in this arrangement. But, 32% did, and Molenaar thinks Bitcoin might fit into the category. A breakout above the present high on a late-week basis is a practical possibility.
Source: X
Bitcoin Volume and Interest Rise
According to CoinGlass data, the Daily trading volume increased by 22.27% to reach $79.07 billion. The Open Interest rose 2.25% to $84.76 billion, which was an indication of high trader participation. These indicators imply increasing optimism about price performance in the near future.
Source: CoinGlass
BTC OI-Weighted Funding Rate 0.0083% shows a neutral to slightly positive outlook of leveraged traders. The market is indecisive. Bulls should maintain key support points, or the bear market may take charge of the game. Traders are currently anticipating the last days of the weekly close.
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