ZKsync/Bitcoin Market Overview

Summary
• ZKsync/Bitcoin (ZKBTC) traded in a bullish trend late in the 24-hour window, closing near its high of 6.3e-07.
• Momentum indicators like RSI and MACD suggest a potential overbought condition and positive divergence in price.
• Volatility increased after 20:00 ET, with Bollinger Bands showing a recent expansion.
• Volume spiked during the late trading hours, especially around 13:00–14:00 ET.
• A strong bullish engulfing pattern was observed near the 24-hour close, signaling possible continuation of the uptrend.

Market Overview

ZKsync/Bitcoin (ZKBTC) opened at 5.1e-07 on 2025-11-04 at 12:00 ET and closed at 6.3e-07 on 2025-11-05 at the same time. The pair reached a high of 7.7e-07 and a low of 5.1e-07 during the 24-hour period. Total volume was approximately 14.1 million contracts, with a notional turnover of $782.6k, indicating growing interest in the pairing. Price moved decisively higher late in the period, supported by a series of bullish signals.

Structure & Formations

The 24-hour candlestick pattern showed a strong bullish engulfing formation near the close, with a long lower shadow and a near-complete reversal of the previous bearish candle. This formation appears to confirm a short-term reversal in sentiment. Key support levels were identified at 5.8e-07 and 5.1e-07, while resistance levels formed around 6.3e-07 and 7.7e-07. The price action suggests that the 6.3e-07 level may act as a temporary cap in the near term.

Moving Averages

On the 15-minute chart, the 20-period moving average crossed above the 50-period moving average, forming a golden cross and indicating a shift to a more bullish bias. On the daily chart, the 50-period moving average was below the 200-period line, suggesting that the longer-term trend remains bearish. However, the price has remained above both averages for much of the 24-hour period, hinting at a potential retesting of the 50-day MA as a dynamic support level.

MACD & RSI

The 24-hour period saw the MACD line crossing above the signal line and remaining in positive territory, signaling continued bullish momentum. RSI crossed above 60, entering overbought territory, particularly from 13:00 to 14:30 ET. However, the price continued to climb, indicating that the strength was not overdone and that buyers remained active. RSI did not show a classic overbought divergence but did suggest a possible consolidation phase ahead, especially if it fails to break above 70.

Bollinger Bands

Volatility expanded sharply after 20:00 ET, with the price moving closer to the upper Bollinger Band by the end of the period. The recent expansion may indicate increased market participation or anticipation of news events. Price sat near the upper band at close, suggesting that the market is pricing in a higher degree of optimism. A pullback toward the middle band may offer a more favorable entry point for longs in the near term.

Volume & Turnover

Volume increased significantly in the latter half of the period, with the most notable spike occurring around 13:00–14:00 ET when the price surged to 7.7e-07. This volume expansion aligns with the price increase and supports the idea of a genuine bullish move. The notional turnover increased in sync with volume, indicating that the price movements were not driven by low-volume manipulation. Divergences between price and volume were not observed during the 24-hour window.

Fibonacci Retracements

Applying Fibonacci retracement levels to the most recent 15-minute swing (from 5.1e-07 to 7.7e-07), the 38.2% retracement level was at 6.5e-07 and the 61.8% level at 6.1e-07. The price closed near the 38.2% level, suggesting that it may find resistance at this level in the coming 24 hours. The daily Fibonacci levels also indicated a potential retest of 6.3e-07 as a key support/resistance point.

Backtest Hypothesis

To test the strength of recent momentum, a backtesting strategy was proposed to evaluate RSI and candlestick patterns as entry signals. The strategy assumes an entry at the next day’s open when both RSI dips below a defined threshold (e.g., 30) and a bullish engulfing pattern is observed. This approach aligns with the observed late-day bullish engulfing pattern and the overbought RSI condition, suggesting that a short-term continuation of the trend may be likely if the conditions persist. The exit is set for the close of the next day, with no stop-loss or take-profit filters applied.