Bitcoin [BTC] Price Fails to Hold Above Weekly Close, $5 Mln Longs Liquidated on BitMEX

By Nivesh Rustgi
Published November 11, 2019 Updated November 11, 2019
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Bitcoin [BTC] Price Fails to Hold Above Weekly Close, $5 Mln Longs Liquidated on BitMEX

By Nivesh Rustgi
Published November 11, 2019 Updated November 11, 2019

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.

btcusd weekly chart
BTC/USD Weekly Chart on Bitstamp (TradingView)

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.

bitfinex and bitmex liquidations
Bitfinex and BitMEX liquidations (Source)

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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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Nivesh Rustgi
1181 Articles
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

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