Bitcoin Shows Signs of Weakness as OBV Warns of $100K Risk
Bitcoin (BTC) has stayed above $100,000 for four months, forming a perceived base for future gains. Yet, a key volume indicator signals potential downside pressure.
The On-Balance Volume (OBV)—dubbed the “grand daddy” of volume metrics—tracks cumulative trading activity, adding volume on up days and subtracting on down days. OBV can confirm trends and act as an early warning for breakouts or breakdowns.
BTC’s OBV has fallen below its recent range, touching levels last seen on April 24, when BTC traded near $94,000, hinting at weakening demand.
Momentum indicators reinforce caution. The weekly MACD histogram shows deeper bars below zero, suggesting rising downside momentum.
Key levels:
- Support: $107,300; a breach could bring focus to the $99,225 low from June.
- Resistance: The 50-day SMA remains the threshold bulls must reclaim.
While BTC price remains above $100K, volume and momentum signals suggest a possible pullback, making careful positioning crucial.
