Bitcoin [BTC] price broke bullish in a whipsaw yesterday as bounced from 6,950 above $7k despite being in a downtrend. It recorded a daily gain of 5.6%, before it met with resistance from the 50-Day Moving average yet again.
On a weekly scale, as reported yesterday, the 100-Period moving average is likely to act as key support level, currently at $7200.
The price of Bitcoin [BTC] at 2: 30 hours UTC on 4th January 2019 is $7300. The over-all RSI (Relative Strength Index) on a daily scale is neutral, as it sky-rocketed to near over-bought levels yesterday above 60. The fear and greed index on the daily is still intact below 40.
The funding rate on BitMEX on a hourly scale suggest that the traders are inclined short before and after the rise. The funding rates were strongly negative before the pump.
As the price failed to break above channel resistance as well around $7450-7550, traders seem to be looking for a correction.
Nevertheless, on Huobi, the long-short percentages is seeing a drastic change with long inclination.
On Okex, as well, while the over-all funding rate is only slightly positive, the percentage of elite traders long vs. short is very high (58% long compared to 38% short).
The order book of these exchanges suggest the number of retail traders going short vs. high position traders is still massive.
Moreover, the Open Interest (OI) on these exchange have dipped considerably since the pump yesterday. It also raises the suspicion that the rise could have been another deliberate short squeeze. Whereas, the US air-strike on Iran has strengthened fundamental spirits, the threat of a correction still looms at large.
Do you think spot (retail) and investment buying of Bitcoin [BTC] will resume? 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