BITCOIN 1W On Balance Volume calling for the ultimate buy now

19 Sep 2022

This Bitcoin (BTCUSD) analysis is on the 1W time-frame, utilizing a historically key indicator, the On Balance Volume (OBV). This has helped us spot both buy and sell opportunities in the past, especially since 2013, and as the market is trading sideways, potentially forming the Cycle bottom, it is perhaps the ideal time to take a look into it again.

Since 2013, the OBV has been trading within a Channel Up. The red arrows present tops on (or near) the Higher Highs trend-line, hence sell opportunities, while the green arrows present bottoms on the Higher Lows trend-line, hence buy opportunities. As you see, BTC has been trading on the Channel's Higher Lows trend-line since the June 13 1W candle. Since it is holding it and gradually trending upwards along with the Higher Lows trend-line, it is a sequence consistent with all prior market bottoms.

The 1W MA50/100 Bearish Cross has been formed this month, strengthening the bottoming argument. If the model continues to play out as it did all these years, then with should be expecting a rally soon with a 1st medium-term target on the middle of the OBV Channel Up and a 2nd on the Red Resistance (circle), which is the extension of the first Lower High of the Bear Cycle.


Do you think the OBV model will continue this pattern and deliver 48k-50k by Q1 2023? Feel free to share your work and let me know in the comments section below!


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