Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The market structure on the four-hour chart was firmly bearish.
- Bulls can wait for further losses before buying.
Bitcoin [BTC] slid beneath the $24k mark in the hours preceding the time of writing. As things stood, it traded at $24.1k, but the inability of the bulls to break out past $25.2k has been exposed. This is likely to shift the market sentiment to the bearish side over the next few days.
Read Fantom’s [FTM] Price Prediction 2023-24
Fantom [FTM] retraced a large portion of the gains it made last week. The sellers were dominant on the price charts and traders can look for opportunities to enter short positions.
The H4 FVG has been filled, will a bounce in prices follow?
Source: FTM/USDT on TradingView
On 13 February, FTM began its rally from $0.43 and reached $0.59 on Thursday, 16 February. From swing low to swing high, this rally amounted to gains of 45.7%. During its surge upward, it left an imbalance on the 4-hour chart.
Highlighted in white, this area has already been filled by the price. It was unclear where FTM will go from here on. However, an FVG left during an upward pump does show a reaction from the buyers upon a revisit. This could happen for Fantom.
If it does, a bounce in Fantom prices would occur. The $0.5-$0.51 area posed stiff resistance. At the same time, there was an H4 bearish order block at $0.54, highlighted by the red box. Therefore, this area could offer an ideal entry to short sellers. The stop-losses can be set above the most recent lower high at $0.553, and take profit targets lie at $0.473 and $0.43.
A more aggressively bearish scenario could see prices rejected at the $0.51 level following a bounce, without reaching the order block. Alternatively, there is also the possibility of further losses with no significant bounce from $0.49. In that case, a retest of $0.47 can be interesting to the sellers.
How much are 1, 10, 100 FTM worth today?
Open Interest attempts feebly to climb but sentiment was bearish behind Fantom
Source: Coinalyze
The one-hour Open Interest chart showed a remarkable downtrend over the past few days. This began on 16 February, after the prices reached a local high. The dwindling OI, alongside falling prices, meant long positions were discouraged, and underlined some bearish sentiment.
Over the past few hours, close to $600k worth of long positions have also been liquidated. It remains to be seen if this can fuel aa Fantom bounce to $0.53. Meanwhile, the predicted funding rate remained healthily positive.
