Bitway – Can BTW clear $1.53 resistance to resume its macro uptrend?

Recent Gains and Correction

The native token of the Bitcoin-compatible Layer 1 blockchain Bitway [BTW] has seen significant gains in recent days, with a 43% rally in 10 hours on October 2nd. The token 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. This rally was likely due to the conclusion of the Binance Wallet's Bitway Booster Season 5 on the 2nd of October, which led to a wave of profit-taking over the weekend.

Market Analysis

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, indicating a strong buying interest.

Technical Analysis

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. The higher timeframe bias was bullish, but the weekend correction shifted the lower timeframe trend bearishly.

Market Outlook

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. The recent liquidations of $552 million in 24 hours, mostly long, also indicate a bearish market sentiment.

Conclusion

In conclusion, while BTW has shown strong bullish signs, the recent correction and lack of high trading volume may pose a challenge for the token's upward momentum. Traders should be cautious and wait for a dip before looking to buy, and keep an eye on the $1.53 resistance level as a key hurdle for the token to break above and resume its macro uptrend.