Bitcoin [BTC] price slid back to $8000 levels yet again, as price failed to break above $8350. The selling pressures have continued to increase the bearish penchant of the market.
While a break-out from the range could be violent, the sideways trend is currently intact. It has been trading within a parallel range for quite some time. Cantering Clark, a crypto-analyst for blockroots, quoted a corner rule of trading on this move.
“Don’t short support, don’t long resistance”
Top Traders Vs. Average Players
The funding rate at BitMEX is negative for quite some time. This indicates a higher short interest from the market. Nonetheless, it also provides an opportunity for top volume traders to make a profit from liquidations on the opposite side.
The long to the short ratio on Okex is reaching parity (near 1), signaling uncertainty. However, the imbalance between top traders and an average trader, mark a bullish penchant. The top traders are in favor of longs in the ratio of about 1.22.
Moreover, while sellers have been aggressive at around $8000 levels, the price has failed to break below support. According to Clark, this could mean the absorption of sellers.
However, he also added that orders must be placed at appropriate levels. He says, “don’t long this thing to financial freedom just yet.”
The price of Bitcoin [BTC] at 3: 30 hours UTC on 23rd October 2019 is $8006. It is trading 2.5% lower on a daily scale.
The traders can expect to panic below the $8000 psychological level. The average long/short ratio on BitMEX dipping below 1 indicates a large number of short interests. Nevertheless, the break-out below previous lows at $7715 will be instrumental for massive price action. Moreover, the range could act as a healthy support level, yet another time.
Do you think that a break-out is around the corner or price will maintain the range? 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