What looks like another dead-cat bounce in Bitcoin [BTC], it recorded a flash pump and dump in the final trading hours yesterday.
Price rose to high at $7430 with a $200 dollar rise (2.86%) from $7225. However, the bounce was short-lived and reversed instantly. Even on the hourly scale, the Bart Simpsons pattern could not be formed. It touched lows at $7150 before stabilizing around $7200 again.
The price of Bitcoin [BTC] at 3: 30 hours UTC on 27th December is $7206.
One of the leading derivatives trader, TraderXO, was overwhelmed by the price action. It was more so because he anticipated the move. However, the lack in strength of bulls surprised him even further. He tweeted,
Is that it bulls…. that all you got?
Moreover, according to his trading plan, Bitcoin [BTC] is still trading in the range between $7700 and $6800 before the break-out can be confirmed.
The move caused a short liquidation of $8.85 million on BitMEX, while $6 million long orders also liquidated to the downside (according to datamish). The funding rate on BitMEX since the fall is negative. However, it is positive on Okex.
The PA recorded a Doji (closing price close to opening) on a daily scale which was follows a couple of spinning tops. Hence, there seems to be a lot of indecision in the market.
On a weekly scale, the price is trending between the 50 and 100 period Exponential Moving Average. The support and resistance for the levels are at $7080 and $7900 respectively.
The bias of the market remains unclear as the trade volume on Okex is rising, however, the Open interest is dipping close to the CME expiry later today. The fear and greed index of Bitcoin has also bounced to 40 with the price still around $7200. Local price actions fail to provide a direction to Bitcoin’s price.
Where do you think the break-out will occur next? Please share your analysis 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