Bitcoin [BTC] drops below the support from the descending channel as leading derivative’s trader Tone Vays calls it quits for the bulls. In his recent trading Bitcoin update, he mentions that the current pump, though impressive, could be another dead-cat bounce.
Nevertheless, it doesn’t necessarily open short signals as the parallel range support and resistance flipping is still underway. It is possible that Bitcoin [BTC] could establish a new range or pattern above $7750.
Vays suggests his criteria for a bullish confirmation; according to him, a break above $8500 with support held at above $7,700 would turn him into a bull for the year. However, he also says,
I’m gonna say with 80% probability, I don’t think we are going above $8500 before the half.
Futures Market Update
Traders at BitMEX are also starting to incline towards shorts after failing to cause a bounce from $8000 yesterday. The funding and premium rate is flipping from negative to positive in the past few hours as uncertainty grows.
About $18.8 million longs got liquidated on BitMEX in the past 24 hours, according to Datamish data.
On Okex, however, the traders are mostly long with a 1.44 long/short ratio and positive funding rates.
Huobi markets seems split between the whales and traders as a greater number of traders are short but position-wise orders are inclined long (52% vs 48%). Moreover, the global macro view is also easing out the buying pressure at the moment.
Nevertheless, as Bitcoin continues to hold support above $7700 a new parallel range could be formed. Only after a ‘higher high followed by a higher low’ the bull markets can be confirmed.
Another trade analyst, Sawcruhteez is more bullish than most traders. According to his trading plan, the subsequent range is going to play-out a bullish reversal above $9000. Currently, his support levels are above $7650. He tweeted,
— Financial Survivalism (@Sawcruhteez) January 9, 2020
The bullish revival seen at the starting of the year, is starting to grow weak in the price action. However, Bitcoin [BTC] rose over 23% in a week, hence a market cool-off and accumulation is healthy as well. As it stands now, Bitcoin [BTC] could fall back to the previous range and revive bearish fears or accumulate above it.
Do you think the whales will look for another squeeze? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com