Bitcoin [BTC] price failed to break above $8000 as it witnesses bear reversal at $7870.
On the spot markets, the total fall in Bitcoin’s price in October was $1599 (17.48%) as it closes at $7550.
On a weekly scale, the closing was positive after four consecutive weeks of losses. Nevertheless, Bitcoin [BTC] is looking to find support from the 50 and 128-period moving average at around $7250-$7300.
CME Bitcoin Futures for November closed at $7800. A 16.17% drop in the month of October.
The price of Bitcoin [BTC] at 3: 45 hours UTC on 2nd December 2019 is #7363.
Traders Going as Long
The open interest in the market is subsiding as traders grow increasingly uncertain of the direction. While the fundamentals are still bullish, the market for Bitcoin seems to be drying up.
Nevertheless, as Bitcoin comes back to $7500, some traders seem to be going long for a cheaper bid. While it is a positive for a buy wall support. However, it can be an adverse signal as Crypto trader XC pointed out,
Longs minus shorts quietly approaching a new ATH on Bitfinex. Back in 2018 this was the ultimate short signal according to CT.
Is the Bottom In?
The long term bearish channel is still intact as Bitcoin [BTC] has broken below the mid-line of the channel. Until almost the fortnight, the low of the channel would be around the swing-lows at $6515. Moreover, a break below it could further ring bearish alarms.
The 128-Day Moving Average also logs a bearish cross with the 200-Day MA.
Another expert trader, Josh Rager, tweeted,
$ looks like a reversal with this follow through break down
High time frames don’t look great. Traders keep trading and hodlers keeping hodling
The price was looking relatively bullish throughout the week as it sought to break above $8000. However, it reverses to touch a low at $7233. Hence, a re-test of lows or long periods of consolidation can be expected in the short term.
Do you think the bulls will to able to keep the swing lows? Please share your views with us.