Bitcoin Shows Weakness as OBV Signals Risk Below $100K
Bitcoin (BTC) has stayed above $100,000 for four months, forming a perceived base for future gains. However, a key volume indicator points to potential downside pressure.
The On-Balance Volume (OBV)—called the “grand daddy” of volume indicators—tracks cumulative trading activity, adding on up days and subtracting on down days. OBV can confirm trends and signal early breakouts or breakdowns.
BTC’s OBV has dropped below its recent range, reaching levels last seen on April 24, when BTC traded near $94,000, hinting at weakening demand.
Momentum indicators support caution. The weekly MACD histogram is forming deeper bars below zero, indicating rising downside pressure.
Key levels:
- Support: $107,300; a break could target $99,225.
- Resistance: The 50-day SMA, a hurdle bulls must reclaim.
While BTC remains above $100K, declining OBV and momentum trends suggest a potential pullback, calling for careful positioning.
