Arbitrum

Arbitrum (ARB), a prominent Layer 2 (L2) roll-up solution, has faced challenges in regaining its psychological $1 level over the past week. Following Bitcoin&#39;s retest of $24k on June 10, ARB dropped below $1. Although Bitcoin has since climbed above $25k and even crossed $26k, the fate of ARB&#39;s bullish reversal on higher timeframes remains uncertain. ARB&#39;s recovery encounters significant hurdles despite a rebound to $0.9075 at press time. Let&#39;s delve into the details.Consolidation and Bearish Order Blocks:Between June 10 and 18, ARB experienced a narrow consolidation range between $0.9075 and $1.034. Notably, the range high coincides with a bearish order block (OB) formed at $1.001 - $1.034 (white) on the four-hour chart on June 13. Above this bearish OB lies the 38.2% Fibonacci level at $1.0417. Additionally, the May support-turned-resistance level at $1.0623 could pose a challenging obstacle for moving beyond the range high, potentially making the journey turbulent for bullish traders. Therefore, if the price is rejected at the range high ($1.034), ARB might retrace to the mid-range of $0.973 or the range low of $0.908.Shorting Opportunity and Bullish Scenario:In the event of a price rejection at the range high, shorting at this level could present a favorable risk ratio, especially if the subsequent drop tests the range lows. However, a session close above the 38.2% Fibonacci level ($1.042) would invalidate the bearish thesis, particularly if Bitcoin ventures into the $27k zone. Nevertheless, ARB bulls must flip the $1.62 level into support to gain a more decisive edge in the market.Improving Buying Pressure and Bearish Outlook:The RSI (Relative Strength Index) and OBV (On-Balance Volume) indicators have increased, indicating improved buying pressure and demand in recent days. However, according to Coinglass, long positions faced challenges in the past 12 hours before press time, with over $100k worth of long positions liquidated compared to less than $10k of short positions. This paints a bearish outlook for ARB. Although this situation may solidify a shorting opportunity, a bullish surge in Bitcoin above $27k could potentially trap many bearish traders. Therefore, closely monitoring Bitcoin&#39;s price action before trading is crucial.Arbitrum&#39;s struggle to reclaim the $1 level amid Bitcoin&#39;s surges has posed a challenge for ARB bulls. The range-bound consolidation and bearish order blocks and resistance levels present obstacles. However, a potential shorting opportunity exists if the price is rejected at the range high, while a bullish scenario requires BTC&#39;s sustained surge and ARB flipping key resistance levels. Monitoring Bitcoin&#39;s movements alongside improved buying pressure will help market participants navigate ARB&#39;s current situation.

Arbitrum Struggles to Reclaim $1 Level as Bitcoin Surges: Will ARB Bulls Prevail?

ItsBitcoinWorld

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