Bitcoin [BTC] broke bullish on 28th August as it rejected another attempt for a break below $9000. The price has been in the green since then, with Bitcoin holding its gains above $10,500. Analysts suggest that we could see a massive move on either side soon.
According to another crypto-trader, B.Biddles, the open interest in Bitcoin is rising. It corresponds to the number of active contracts (Short or long) on Bitcoin. As the OI is rising, the pressure for a big move is also rising. He tweeted,
$btc – micro up-trend since ~Aug 31.
OI rising as we consolidate. That usually confirms trend. But I don’t feel certain enough to enter a trade. Next move will be violent as OI is rising in a tight range, lots of potential liquidations on either side.
Sawcruhteez also suggested that, “We could get a big move in the blink of an eye.” However, Tone Vays expressed that possibility that we could see neutral move for another two months, “who knows, he says.”
On the four hour chart, Bitcoin is holding on to the 200-Day Moving Average. Moreover, the price above 100 and 50-Day Moving Average is an bullish indicator. Sawcruhteez also suggested that we could soon see a ‘golden cross’ between the 50 and 100-Day Moving Average if Bitcoin continues to trade above it.
On the daily chart, its still trading below the wedge pattern and psychological resistance at $11,000.
Moreover, Tone Vays indicated that we could re-test the $10000 support levels. With respect to Bollinger bands, Bitcoin is testing bearish waters. However, the prior trend sets up for another bullish break as BTC broke above the 50-Day Moving Average.
According to Vays, on the weekly, there are mixed signals for bull and bear. However, on an alarming note, the MACD is turning bearish which could be a reason of concern for the bulls.
Nevertheless, Bitcoin is making positive moves again today as it is testing $10,800. The price of BTC at 5: 15 Hours UTC on 6th September 2019 is $10,792. It is trading 1.27% higher on a daily scale.
The market sentiments on Bitcoin seems bullish as long as Bitcoin trades above the $9000 in the short term. Even then, traders see strong support at many levels. Crypto-trader, Josh Rager tweeted,
If $BTC price does break $9k, it’s not really any reason to panic as many buyers will likely step in by high $7ks
For me, it’s having to sit through weeks of down/sideways price which makes for a slow market
In which direction do you think Bitcoin [BTC] will make its move? 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