Bitcoin [BTC] price turned slightly bearish last day as price dipped below $9250 levels to test low at $8985. The 200-Day Moving Average ($9025) is currently acting as support. However, the 100-Day moving average ($9607) as resistance.
Trader Josh Rager tweeted on the price movements,
$ lower time frame range broke before daily open leading down to test $9k
Keep an eye on $8800, needs to hold and above 200DMA
Weekly/ monthly open still remain the place to break for continuation
According to him, the weekly open at $9547 and the previous month opening at $9593 remain critical for the continuation of the bullish break.
Sawcruhteez tweeted about the break above the falling wedge pattern on Bitcoin. The target of the move is $12,800. Nevertheless, in his Sawcruhteez Streams, he also listed the bearish arguments, which were quite significant.
— Financial Survivalism (@Sawcruhteez) October 31, 2019
The recent jump, though attributed to Xi Xinping, hasn’t seen rallying volumes; instead, it has fallen back to levels of consolidation.
Hence, while the historic move indicated buying into strength, Sawcruhteez suggested that the Ichimoku cloud and ADX indicators are still bearish. He also hinted at the possibility of whale-sized orders shifting the price, which could lack real strength in the market.
The NVT signal, which measures the ratio of value to the 90DMA transaction volume, also witnessed a spiked to 80 following the move. This could suggest over-valued conditions. However, the growth of the futures and derivatives market is having an increasing effect on Bitcoin’s price as well.
Bitcoin Futures Order Book Update
BitMEX recorded another consecutive day of long liquidation as the expectations of bulls failed to meet. About $19.6 million longs were liquidated. However, 4.25 million in shorts were settled, as well.
The funding and premium rate at the derivates exchanges also dipped as the uncertainty seems to have crept in the market. The basis on Okex, which was trading about $10, has also declined to $4. While still positive, the volume of buying interest seems to have cooled down.
Hence, while the price action is inclining towards a cool-down, a bullish break is on the cards.
Do bulls have the strength for another round of gains? Please share your views with us.