I think we are at a crucial area for Bitcoin . Will we hold support at 6k or are we going lower?
The average cost for mining lies around 6k. Could we be starting to look for a bottom?
I decided to look at onbalanced to see if there is anything interesting to find in this indicator.
On balanced could be used to spot a trend reversal. We would need either a price moving in a stagnant or down direction and our OBV in an uptrend. (divergence)
It could mean that smart money is buying into Bitcoin .
Looking at the weekly chart we can see that there is a . The price of bitcoin has been moving down form 6.4k towards 6.1k over the course of april/may/june while the OBV is trending upwards.
Looking at the 4hour chart we can see that the OBV clearly moves into a channel.
We could make the argument that a possible could be in play. If this would be a . We are now at the bottom of that .
I think it would be important to see if buyers are stepping in at this point. If this support does not hold we could see significantly lower prices and the OBV plummeting.
Will the OBV start moving up from here? It is possible.
Looking at the we can see that somewhat also the is into play. But while we have dumped hard the OBV is still pretty close to the upper part of the channel.
Will it break this channel on the upside? The coming weeks will tell.
Thanks for reading I thought it would be interesting to look at the OBV and see if we could find anything interesting.