Bitcoin [BTC] price continues to range between $8550 and $8750, while the traders are looking for more volatility.
Derivatives and crypto-trader, XC, tweeted on the current market conditions,
Lots of people gambling over the last few days on $, this range been engineered to f*** low time frame traders and it seems to be working well.
According to Datamish, about $11 million in long orders have been liquidated on BitMEX compared to $1.6 million in shorts. The drying up of movements seems to be increasing the bearish inclination of the traders.
Nevertheless, as BTC continues to hold above the high of the previous move and is ranging indecisively, there is no reason to flip from bias, Cantering Clark tweets,
I’m not sure why many are so keen about looking for shorts right now. Bitcoin is staying bid above some good levels. Sure that can change,
If Bitcoin [BTC] continues to hold high from previous move at above $8450, the bullish pattern would remain intact.
Where to Expect Bearish Momentum?
On the daily scale, the price is currently above the 25, 50, and 100-Day moving average. The 200-Day MA is the last resistance level for bullish momentum.
Nevertheless, if the price breaks below them around $8000 again, bears could make strong moves towards swing lows.
The stop and reversal (SAR) point on the daily scale is also at critical point of reversal to bearish side. Nevertheless, the weekly SAR is still bullish.
Another trader George marked his bearish trading plans who expect distribution in Bitcoin [BTC] after the swift move in the beginning of the year. According to him, a move up in the near future could be a set for a bull trade. He tweeted,
His levels of invalidation are at $8700, he expects downturn below $8560.
The first likely targets for the bears at the moment are around the $8200-$8300 range.
Bulltrap imo. Let's see… pic.twitter.com/cxHctqPJ6X
— George (@George1Trader) January 22, 2020
Hence, the range between $8400 and $8600 can expect to drive out weak hands, and could cause bull and bear traps under current sentiments.
Which side are you currently on, bulls or bears? Please share your bias with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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