When operating in financial markets as volatile as the cryptocurrency trading sector, it is very difficult to rely on fundamentals in order to determine causation. This is particularly the case with Bitcoin, a digital asset that is just starting to get the circulation it should as a currency token. However, we still have some important takeaways from recent market activity.

After trading sideways for several days, BTC had a mini-impulse higher today after an early day's low. However, the rally was limited, with a strong wave of selling on the way to below $48,000. A previous sell-off had been spurred by a lot of bearish short covering which has reduced the short term oversold condition. On the back of this selling, RSI and MACD had been flashing negative. However, the overall short-term outlook somehow remained bullish. In a nutshell, RSI is trending down while MACD is trending down but overbought, so this does not reflect the same short-term trend. As for further upside, RSI could drop to the lower end of the downtrend channel, signaling the path of least resistance.

The three aforementioned indicators popped up on the charting software of traders who were waiting on the sidelines to see if a mini Bitcoin rally would materialize, which eventually did right at the beginning of the first trading week in October. These traders are probably still looking to take a short position on Bitcoin in the coming weeks. However, the most important technical level of the current trend is $55,000 and there are no technical indicators that show any sign of breaking past this level.

Currently, the number of short-term buyers are few and far between. This is an extremely important level for Bitcoin in the short term. If it is broken, we may see the whole mini bull run reversed. In the weekly chart, the number of buyers are still significantly lower than the number of sellers. In a perfect scenario, the number of buyers should be at least 5 times higher than the number of sellers. However, this is not the case. So far, the number of buyers is below 1.3 times the number of sellers.