Bitcoin [BTC] began it’s bullish price action early in the year after a strong reversal to a bottoming attempt around $6900. The yearly open of Bitcoin [BTC] at $7150, followed a low at $6900 the next day.
Nevertheless, four days since then, it is looking for a complete transformation in sentiments. Price has gained more than $1000 from the low at $6900.
The open interest (OI) on BitMEX increased by over $25 million, despite short liquidations of about $40 million (according to Datamish). Moreover, a 10% move usually causes larger settlements in the market, the liquidation order indicate that bears might have been apprehensive of the move.
However, the funding rate on BitMEX has been negative since January 5th. It looks to be turning positive at the break of last hour. Nevertheless, majority traders were expecting a pull-back from $7800. The next resistance levels are around $8150 and $8350.
The funding rate on Okex is negative as well, however, the BTC basis on Okex is largely positive. Top traders on Okex are slightly inclined towards longs.
Moreover, the traders on Huobi exchange elite traders are inclined towards long with a 58% vs. 42% long to short position.
The Open Interest on both Okex and Huobi saw a rise since yesterday. The volume of futures trading on CME and Bakkt was also considerable the previous day above $250 million and $40 million respectively.
The price of January futures for Bitcoin [BTC] at CME is $8020 at press time.
The futures market for other cryptocurrencies like Litecoin, BCH and Ethereum is also seeing a rise, as the altcoins are gaining above Bitcoin [BTC] in the bull market. While the rewards in altcoins are sometimes greater than Bitcoin, the systematic risk on altcoins is higher as well.
Do you think Bitcoin will turn bullish again? 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