Bitcoin [BTC] price dipped below $9000 and the 200-Day Moving Average yesterday. Bulls, however, seem unnerved by the dip. The fear and greed index dropped slightly on the decline. However, unlike last time when BTC dipped below $9000, the sentiments seem more in the neutral range.
The price of Bitcoin [BTC] at 4: 00 hours UTC on 9th November 2019 is $8810. It tested a low at $8661 the previous day.
BTC is looking to fund support around the $8800 region. Trading Analysts like Sawcruhteez and Escobar suggests that $8.5k – $8.6k should act as strong areas of support.
Moreover, while a wick covered the gap on CME on 5th November, the price momentarily dropped to $8600 before climbing back up to the mean price above $9200. The overall market was not affected by the drop. Hence, the tendency to fill the gap at $8.6k is also acting as a healthy psychological support level as well.
The funding and premium rate index on BitMEX is positive despite the drop. Usually, a price dip is followed by negative change due to the fear of the bears. Nevertheless, the positive bias indicates that bullish sentiments are intact.
The bitcoin basis on Okex has been positive, as well. The magnitude of the basis ($40-$50) indicates that traders went long with high conviction around $9000. Even at $8800, the basis is above $20.
Hence, there is little denying that Bitcoin is in a bull market.
The 200-Day Moving Average
In a bull market, Bitcoin tends to trade above the 200-Day Moving average. Hence, a dip below these levels is usually for a short term only. Sawcruhteez suggests that it acts as a magnet for the price.
Nevertheless, Bitcoin has moved below the 200 Day Moving Average with a long candle again is a “very bad sign.” Tone Vays noted in his daily update that even a fall below $7000 is not out of the picture. The fundamentals around Bitcoin are constant, as well.
The retail investor interest in Bitcoin seems to be stalled as well. The Google Trend searches on Bitcoin suggest that there is hardly any net positive growth as we’re coming towards the end of the year. The searches have fallen back to 2019 Q1 levels.
However, the halving timeline next year provides for the required bullish push. Moreover, Bitcoin trader sentiments are high at the moment. Even Bakkt recorded a new high in daily volume.
Today we set a new daily record of 1,756 Bakkt Bitcoin Futures contracts traded
— Bakkt (@Bakkt) November 8, 2019
Do you think that a bounce is incoming, or it was a bearish reversal? 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