Bitcoin [BTC] price bullish view comes under suspicion again as price dips below $8000. The volatility, macro view, and trade orders on derivatives market could cause massive up and down-swings.
Price broke above the Bollinger Bands yesterday is now just inside its’ upper limits. The 200-EMA at $8150 continues to act as resistance, while the descending channel is providing for bullish support.
Positions View on Top Exchanges
The funding and premium rate suggests that trader are expecting a bounce above $8000 again. The upper limit of the descending channel is around $7930.
On Huobi the percentage of long vs. short ratio has seen a fall since yesterday along with Open Interest (OI). Nevertheless, the overall inclination is still bullish at the moment.
The OI on OKex is down as well since. Moreover, the funding rate on Okex is currently on the bullish side. The top 100 traders on Okex are also inclined towards long (53% vs. 45%).
CME Gap looms around $7700
On the CME front, traders have been weary of the ‘gap’ in the charts around the $7600.
Usually, gaps occur during the weekends when the trading on CME is halted. This particular gap was recorded between daily opening and closing on 7th and 6th January respectively.
Since historically, price has had a strong tendency of filling the gaps. The traders might be motivated to incline themselves towards shorts.
For you CME gappers, the price doesn’t technically “have to” fill the gap for Bitcoin but historically it has And it’s likely price makes its way back down to $7600-$7700s but doesn’t have to be immediate Just keep that in mind
Marco Sentiments due to the US-Iran Tension
Moreover, the dip in gold followed by Trumps’ comment on easing the tension further puts selling pressure on Bitcoin. Gold has dipped about 3.5% from it’s highs above $1600 yesterday. If the correlation with gold and global macro events is true, a Bitcoin dip will be justified at the moment.
The price of Bitcoin [BTC] at 3: 00 hours UTC on 9th January 2019 is $7974. It is trading 5.7% lower from it’s high yesterday. BTC rose by over 23% since the first air-strike by the US.
Do you think Bitcoin will continue its’ bullish streak or correction will ensue for a while? 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