Bitcoin [BTC] Price Breaks Support from Bear Pattern, but Holds Bulls above $8500

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Bitcoin [BTC] has been primarily ranging between $8500 and $8725 since the violent move on Sunday.

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Nevertheless, the price broke below the ascending wedge pattern on a daily scale, which could be a bearish signal. The 50 and 100 Day Moving average is at currently at $7608 and $7975, respectively, will act as levels of support in case of bears.

BTC/USD 1-Day Chart on Bitstamp (TradingView)

On a weekly scale, while the Lucid SAR indicator turned bullish last week. However, the bull run has still not been able to flip the MACD and CMF positive. The MACD on a daily scale seems to have topped out as well.

BTC/USD 1-Week Chart on Bitstamp (TradingView)

Derivatives and crypto trader, Tone Vays, notes is his latest Trading Bitcoin update that while the weekly is slightly bullish, on a daily scale

All signs are pointing to the top being in.

Furthermore, other traders with a overall bearish bias like TraderXO and Josh Rager, we can expect a short term bounce to $9000. However, the support around $8000-$8200 is critical for swing action. Rager tweeted,

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Could potentially see a push up before continuation down and watching the support at $8000 to $8200 for a bounce Break below $7700 would be bearish but not expecting it drop that low at this point in time

However, if Bitcoin breaks above the 200-Day Moving Average at $9015, it is expected to turn most traders bullish. The price of Bitcoin [BTC] at 5: 00 hours UTC is $8665.

Futures Market Update

The funding rate on BitMEX continues to be positive as Bitcoin holds its price above $8500.

BitMEC Funding and Premium Rate (TradingView)

However, on Huobi, the traders are inclined short with the open interest in Bitcoin contracts dropping the last 12 hours. On Okex we well, the open interest witnesses a steep drop in the last two days. Nevertheless, majority positions are still in favor of longs at the exchange.

BTC/USD 1-Day Chart on CME (TradingView)

The CME futures market currently has three gaps are pending to be filled. The recent ones is bullish around $8700, while the one logged in August last year is around $11000. Nevertheless, there is also a bearish gap looming around $7700.

Moreover, the on-chain fundamentals and halving are adding to the positive sentiments.

Where do you think the uncertainty will yield? Please share your views with us.

Nivesh Rustgi: 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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