Bitcoin [BTC] rose $200 on Sunday as price broke above $9000. The psychological positive move along with green across the entire crypto market raises the sentiments of most traders towards the year-end.
However, it fails to hold the bullish psychological as the price has fallen back to $8950 levels. The price of Bitcoin [BTC] at 4: 30 hours UTC on 11th November 2019 is $8955.
Bitcoin Weekly Close
On a weekly scale, even after the positive move, BTC price closed on a red. According to Tone Vays, the weekly chart looks neutral, however, on a bearish count according to sequential analysis.
Similarly, on a daily scale as well, the 200-Day inability to break above the 200-Day Moving average brings it closer to a death cross with the 128-Day moving average.
He cites that the resistance for a bullish break-out this week out would be around $9600.
Another Gap Fills on CME on the 4-Hour
The change in the price of Bitcoin over the weekend often creates a substantial gap with CME. As CME is one of the largest regulated exchanges for Bitcoin futures, it has a considerable effect on Bitcoin prices.
Moreover, with Bitcoin, it generally has a tendency to fill the price gaps with CME. The difference was about $215, as Bitcoin closed at $8885 on Friday. With the correction on Monday to about $8950 as filled most of the gap.
Moreover, the volume of the break was also not enough to justify a massive bullish breakout.
Bulls Still Scared of the Bears?
The bullish turn was accepted by the market contently as traders moved further long. Only a small percentage of short liquidations were noticed signaling a bullish inclination.
However, since Bitcoin fails to maintain the levels, about $5 million worth Bitcoin longs liquidates on BitMEX in less than 2 hours.
Technically, Bitcoin is not out of the clutches of the bears. First and foremost, the 200-Day Moving Average continues to act as resistance and is now rising, currently at $9240.
The market sentiments are largely bullish with December futures contracts selling at $9075 and a high long/short ratio on spot exchanges. The funding rate on BitMEX and Bitcoin basis on Okex is also positive with large magnitudes signaling strong bullish inclination. However, there is still a lack of momentum at the moment.
Do you think the strong bullish inclination is justified or bears are still strong? Please share your analysis 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