Bitcoin’s on-balance volume suggests BTC is about to see a highly bullish weekly close

Bitcoin’s on-balance volume suggests BTC is about to see a highly bullish weekly close

Bitcoin incurred some notable overnight volatility that favored the cryptocurrency’s bulls, which marks a resolution to the bout of sideways trading that it had been caught within at $9,600 in the time following the “flash crash” it faced last Wednesday.

This latest movement seems to have bolstered the crypto’s technical situation, which comes as BTC fast approaches its key weekly candle close.

One technical indicator that provides investors with insight into which direction an asset is heading next is now painting a bullish picture for BTC’s near-term price action, as its on-balance volume (OBV) is currently breaking above a long-held descending resistance line.

Bitcoin holds above key level as weekly close fast approaches

At the time of writing, Bitcoin is trading up just under 3% at its current price of $9,870, which marks a notable climb from daily lows of $9,550 and only a slight decline from highs of over $10,050.

Yesterday’s rally came about after the crypto had found itself caught within a bout of sideways trading in the time following its drop from highs of $10,200 to lows of $9,200.

The price action seen following Bitcoin’s “flash crash” seems to point to significant underlying strength amongst bulls, suggesting that the asset’s firm 2020 uptrend may be far from over.

BTC is currently just a handful of hours away from closing its weekly candle, which could set the tone for where it heads in the days and weeks ahead.

Big Chonis – a popular cryptocurrency trader and analyst – spoke about this weekly close in a recent tweet, telling his followers that a close above the crypto’s middle Bollinger Band would be “notable.”

“BTC currently holding above middle BB intraday… closing above would be notable.”

Bitcoin BTC
Image Courtesy of Big Chonis

This indicator suggests BTC is in for major momentum

Chonis further explained that one technical indicator that suggests Bitcoin will soon see notable upside is BTC’s on-balance volume indicator, which is currently pushing above a descending resistance level that it has been caught beneath for several months.

“BTC – OBV poking above this respected falling resistance line.”

Bitcoin BTC Crypto
Image Courtesy of Big Chonis

In essence, OBV is a momentum indicator that gives analysts insight into which direction an asset will trend based on its volume flow.

If this OBV breakout is sustainable and allows Bitcoin to post a bullish weekly close, it is highly probable that the crypto could see some significant upwards momentum in the coming days and weeks.

Posted In: , Analysis

The above advertisement is an referral link.

Invest with AMFEIX

Like what you see? Subscribe to CryptoSlate

Get our daily newsletter containing the top blockchain stories and crypto analysis straight to your inbox.

Sign up to stay informed
Cole Petersen

Cole Petersen

Journalist @ CryptoSlate

Cole is a freelance journalist and university student studying philosophy. He focuses primarily on covering cryptocurrency and blockchain-related news. He owns a non-life-changing sum of Bitcoin and enjoys day trading.

View author profile

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.