The native token of the Bitcoin-compatible Layer 1 blockchain Bitway [BTW] was one of the altcoins that made strong gains earlier this week. On Monday, the 5th of October, the altcoin rallied 43% in 10 hours.
The altcoin pushed from a low of $0.91 to $1.31, seemingly undoing a good chunk of the weekend’s 49.2% correction from $1.72 to $0.86.
It was likely that the conclusion of the Binance Wallet’s Bitway Booster Season 5 on the 2nd of October led to the wave of profit-taking over the weekend. Capital flows into smaller altcoins, and the subsequent sentiment shift also helped explain BTW’s bullishness.
The positive price reaction to start this week was a good sign.
Can BTW buyers keep the momentum going to reach $2?
On the 1-day timeframe, the $0.77 local resistance zone of August and mid-September was overcome and also retested as a demand zone. BTW has kept its upward momentum going in recent weeks, though it has seen a correction from $1.72 to a dip below $1 over the past week.
The A/D indicator continued to creep upward despite the correction. The selling volume was not high compared to the buying spree in July and August, but there was concern. Trading volume needs to pick up the pace to keep the rally going.
To the north, the $1.99 Fibonacci extension level was the next price target, now that the $0.81-$1.0 demand zone has been tested and defended as support.
Bitway traders must navigate THIS bearish setup
Though the higher timeframe bias was bullish, the weekend correction shifted the lower timeframe trend bearishly. At the time of writing, BTW was trading just below the $1.30 supply zone at the 50% retracement level of the recent correction.
As such, a rally toward $1.53 might be part of the short-term bearish move. Traders can maintain a bearish bias for now and wait for a dip toward $0.87-$0.81 before looking to buy.
There were $552 million in liquidations in 24 hours, $482 million of them long, as Bitcoin briefly dipped to $83.6k. Interesting for the BTW bulls, the altcoin hardly reacted to this market-wide price dip.
Final Summary
- The BTW rally of 43% was a strong bullish sign after the weekend correction of almost 49%.
- Despite the good start to the week, the short-term price bias can remain bearish until the price pushes past $1.53.
Be the first to comment