The year 2023 has marked a bullish trend for Bitcoin as positive trader, investor and speculator sentiment has contagiously spread throughout the market.
This analysis will explore the price behavior of BTC on the daily and weekly time frames with the goal of forming future projections. Will buying pressure remain robust?
Weekly time frame
BTCUSD - 1 Week Time Frame
The key level at which the price is currently located is the so-called New Week Opening Gap (NWOG), corresponding to the Fibonacci levels of the targets of impulsive movements.
As BTC's price is currently at a local potential high, it is imperative to await the next price movement.
Market structure theory suggests that once the Higher High (HH) is broken, a correction expected, which brings about more favorable buying opportunities for traders and investors.
Daily time frame
BTCUSD - 1 Day Time Frame
Readings on the daily time frame mirror the beforementioned theory.
It is important to note that the potential upcoming correction must take place in a corrective bearish manner - meaning that sellers cannot succeed in achieving a a major price decline - if renewed bullish strength is to prevail.
A price correction below the Higher Low would otherwise indicate potential upcoming bearish momentum for Bitcoin.