Bitcoin [BTC] price surprisingly surged by $2500 last week to claim $10,000. The reason for the rise is attributed to Xi Xinping’s announcement on blockchain innovation in China. While the decision has caused a stir in China, Bitcoin price movements have begun to threaten the bulls.
In the past six hours, about $30 million worth of futures long were liquidated at BitMEX. The data provided by Datamish also records more than $13 million in longs settled at Bitfinex as well.
Nevertheless, the ratio of long to short is heavily inclined towards the bulls. Currently, the long/short ratio on Bitfinex and Okex is 4.09 and 1.75, respectively. The increase in the respective long interest in both exchanges is about 10-20%. Moreover, the BTC basis at Okex is also positive, with a large magnitude of $10-14.
The BitMEX funding rate also flipped positive after the flash surge. It has been indicating a long inclination in the market for the past four days.
The top 100 traders’ sentiment at Okex is, however, at parity with the long/short ratio at 1.22.
Technical Standpoint and Expert Views
The price of Bitcoin [BTC] at 4: 45 hours UTC on 29th October 2019 is $9421. It is 2.3% lower on a daily scale. The 128-Day Moving Average is currently acting as resistance to the bulls.
Nevertheless, $9350-$9450 acted as support levels for Bitcoin before the break of the descending triangle. Hence, as it continues to hold support, the consolidation is likely to yield another positive move.
Crypto trader B.Biddles tweeted, noted that a bullish break above $9450 levels could begin another round of gains.
we flip this here blue dotted line, mama gonna open up that purse and buy herself some bitcoin pic.twitter.com/F0Tn8Zhva8
— b.biddles (@thalamu_) October 29, 2019
Derivatives trader and crypto analyst, Tone Vays, however, advised caution at the moment. According to him, while the charts are showing a bullish inclination, the possibility of a fake-out is not out of the woods yet.
The 200-day Moving average on the daily chart is at $8985. The price will need to hold above it for a continued positive move, a break below it could revive the bears again.
Do you think there is more steam left in this bullish run or further corrections are in order? Please share your analysis with us.