Bitcoin [BTC] bears seem to have failed at another strong attempt of a break below $8000. A reversal on shorter time frames brings some relief for the bulls.
According to TA, Bitcoin has been in a bear market for the second half of 2019. The surprising 35% surge showcased promised for a reversal, but the bears remain in control. The continuation of the bearish channel is a strong indicator of the trend.
The price of Bitcoin [BTC] at 5: 00 hours UTC on 20th November 2019 is $8091. It is trading at par on a daily scale.
The Relative Strength Index is used to estimate market sentiments during specific trends. On the 4-hour chart, the RSI is attempting to break above the threshold at 30 in an upward direction. A break could signal an ‘exit’ for the short orders.
Traders Hopefull of a Bullish Action
Bitcoin markets are more inclined towards longs.
The funding and premium rates at BitMEX slid close to a reversal as Bitcoin attempted to break below $8000. Nevertheless, it is still only slightly positive with 52.4% short inclination.
On Okex and Bitfinex, the traders continue to hold larger proportions of long orders. However, the sentiments seem to be shifting as fear creeps in the market.
Bitcoin trader and chart analyst, Zoran Kole thinks that the bear capitulation is not far away. While he perceives further chopping towards $7,500, he sees a bullish reversal soon as well. He tweeted,
I want to smell the fear all the way down to 7.6k. The more bearish CT sentiment gets, the more confident I am in being a contrarian. $ Capitulation.exe coming soon… #
The fear and greed index on Bitcoin is trending downwards which makes another low at swing law at 32. Hence, the bulls are beginning to lose confidence, around 20 the index would reach its threshold.
Do you think traders will get the reversal or the bearish trend will continue? Please share your views 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