Bitcoin [BTC] price dipped about $200 on Monday after reaching a high at $7666.
The price of Bitcoin [BTC] at 4: 15 hours UTC on 10th December 2019 is $7365. It is trading 1.6% lower on a daily scale.
BitFinex Long-Short Difference
BitFinex longs increased by over 50% from 25,600 BTC to about 38,280 BTC. It broke above the yearly high of the number of contracts just north of 38,200.
The shorts, on the other hand, are near all-time lows at around 6000 bitcoins.
There are multiple ways in which the above scenario can be judged. The increasing long interest signifies a strong bullish momentum. However, it also increases the susceptibility to a squeeze (long this time). Nevertheless, an expert trader, UglyOldGoat, suggests that these indicators can be slightly misleading as the long and short orders are always balanced in any market.
Furthermore, crypto trader, XC, also notes that the comparison is on a Bitcoin scale, in terms of USD, the break of the ATH of Long – Short orders is still pending.
On BitMEX, the long orders saw 5 times more liquidation than the short orders. Nevertheless, it also suggests that they looked to book their profits from the shorts.
Price Take – Resistances and Support
The chopping action is looking for support above $7350, the cross-section point of the 100 and 50-period moving average on the weekly scale.
Crypto Trader, Josh Rager indicates that $7080 is the next support level for Bitcoin. On short term sentiments, he tweeted,
All together – is this bullish or bearish – IMO, neither short term, it’s ranging and could likely be an accumulation area
The resistance for a bullish break is around $7500 and monthly open around $7800. According to leading derivatives and crypto trader, Tone Vays, the market is split between the bulls and the bears. Nevertheless, he says,
I give it approximately a 60% chance that we go below $6500 before we go above $10,000.
What probability would you give to a bullish break-out at current prices? 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