- Optimism, that cheeky little rascal, has been strutting about with a short-term bullishness, though whether it can continue its merry dance past $0.74 remains a mystery wrapped in an enigma.
- As for Bitcoin, it seems to be the wise old owl that might just guide OP’s price action through the murky waters of the week ahead.
Our dear friend Optimism [OP] has been up to some rather heightened speculative shenanigans. On the 6th of June, it decided to test the $0.59 support level, and since then, it has rallied a delightful 20%. Bravo, OP!
Now, despite the bullish structure break on the daily, one mustn’t get too carried away; a rally to the range high is not exactly a sure thing. The liquidity at $0.74 could very well play the role of the dramatic villain in this tale.
Swing traders, those daring adventurers, may find a buying opportunity if the mid-range resistance decides to flip to support. Until then, our risk-averse friends might want to sit back with a cup of tea and wait for some clarity.
Going short? Well, that might be as feasible as trying to teach a cat to fetch, given the bullish structure.
Optimism bulls lay siege to the $0.72 resistance
The 1-day chart, a veritable tapestry of price action, revealed a range formation (white) between $0.59 and $0.84. Optimism, in a fit of enthusiasm, saw a bullish structure break (cyan) on the daily chart, which has encouraged a bullish bias among traders. Quite the spectacle!
A move beyond the mid-range resistance would present a swing buying opportunity targeting the range high at $0.84. However, at this very moment, the bullish momentum is about as underwhelming as a soggy biscuit.
The MFI, bless its heart, showed a reading of only 44, but no divergences yet. A bit like a party with no music, really.
The OBV, that poor soul, has been struggling to trend higher. Since mid-May, it has been moving sideways, reflecting an equilibrium in buying and selling pressure. This explains the range formation quite nicely.
It also hints that traders and investors should not expect a breakout beyond $0.84, which is rather like expecting a cat to enjoy a bath.
The 1-month liquidation heatmap revealed that the buildup of liquidity around $0.72, the mid-range level, had been swept clean. Over the past couple of days, a veritable horde of short liquidations has accrued just above the $0.72 mark.
This means that a move to $0.74 is possible in the short term, before a bearish reversal swoops in like a hawk on a hapless mouse.
However, if Bitcoin [BTC] decides to rally past $110k and continues its upward trajectory, OP might just race toward the $0.85 magnetic zone next. Quite the thrilling chase!
Data from Coinalyze, that ever-watchful oracle, showed that the rally to $0.72 was accompanied by a $22 million increase in Open Interest. The funding rate, which had been as negative as a rainy day in London, began to shift in the past 48 hours.
The funding rate did not show overwhelming bullish sentiment, but it was a start, much like a toddler taking its first steps. The spot CVD has been moving sideways in recent days, but the increasing OI promises heavy speculative activity.
This short-term bullishness could help propel Optimism beyond the local resistance, much to the delight of traders everywhere. Cheers to that!
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2025-06-12 08:14