BTCUSD Remains in a Distribution Phase

Currently, BTCUSD remains in a distribution phase following a recent two-week expansion. It was initiated by a rebound from a developing trendline in mid-October 2023. As a result, a significant downward retracement is looming.

This period of consolidation reflects the market’s attempt to find stability after the recent surge. Prior to the surge, BTCUSD had algorithmically rallied alongside a rising trendline. This implies that the increasing momentum of the market’s bullishness began after the bears failed to keep the price falling. A FVG (Fair Value Gap) formed on October 21 during the initial stage of the massive rally.

BTC Key Levels

Demand Levels: $31862.00, $28661.00, $24750.00
Supply Levels: $36150.00, $41020.00, $48240.00

What are the Indicators Saying?

The MA Cross indicates a bullish trend, while the RSI suggests an overbought market. Both indicators typically indicate the strong presence of bulls in the market. As a bearish marabou candlestick emerged in the distribution phase, BTCUSD is likely to begin a markdown to the discount zone. However, since the order flow of the market remains bullish according to the MA Cross, the bullish resuming at the discount zone is highly probable.

 

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