Bitcoin [BTC] price has been testing the upper limit of its horizontal range since December 6, 2019. The uncertainty in the market has compressed the action between the 50 and 100-period moving average and $7560 (monthly open) on the 4-hour chart.
The price of Bitcoin at 4: 00 hours UTC on 9th December 2019 is $7521.
The traders are growing increasingly wary of the direction of the market. On BitMEX, the funding rate has been marginally positive for the past few days, as the premium rate has been primarily negative.
On Okex as well, the percentage inclination of shorts is in favor of longs (l/s ratio: 0.93). BTC basis on Okex was negative as well, signifying a selling of futures and perpetual contracts.
The volume of open interest in the market also dipped due to the uncertainty. According to Skew data, Huobi and Okex are reporting larger trading volumes than BitMEX which is just around $1 billion.
Bullish Perspective Targets $8000
The accumulation in Bitcoin is supported by low volume. Nonetheless, it seems like has been able to resist the selling pressures in the past couple of weeks. While not much has changed with respect to price, the market sentiments are reaching are flickering on both sides.
Popular Bitcoin trader, TraderXO targets a move up to $8000 before we see another sizable correction. He tweeted,
So far nothings changed.
Key support is range lows 74
Price continuously failed to close above monthly open. Closing above monthly open should see further upside to 8k imo.
The monthly open for December 2019 is $7560.
According to analysts, Clark Cantering, it finds “uncanny resemblance” of the 4-Hour chart with the 2018 Nov/Dec accumulation phase. The accumulation eventually led to the beginning of the bull run in April.
However, while the sentiments are considering the bearish possibility this time, the shorters were considerably larger during the Q1 accumulation in Bitcoin. He notes,
The sentiment got to the point of calls for 1k again. Price is hovering above HTF 2017 – current This chop seems purposeful. $
On the higher timeframe, the volume profiles reflected that the price is still holding above bullish support.
While a built up for a next move is one the cards, the shorters could lead the market to extreme fear and a new bottom.
Do you think that Bitcoin bulls will come into action soon? 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