Bitcoin [BTC] price reversed its’ short-term corrective momentum around the support levels above $7600. The price of BTC at 4: 10 hours UTC on 11th January 2019 is $8170.
The $500 move to the upside has the bears taking liquidating their losses at the moment. According to datamish, about $23 million in shorts got liquidated at BitMEX. Huobi also reports a long list of liquidations of short orders since the recent break above $8000.
The Open Interest on BitMEX is strong while on Huobi it has been seeing a drop since low on 9th January. Moreover, the traders on Okex and Huobi are also showing a decreased long interest. The long/short ratio on Okex is 1.19. While on Huobi about 58% traders in numbers are inclined towards longs, the overall position is balanced around 50%.
While, the move is turning a lot of traders into bulls, there are still resistance above. As reported yesterday, according to Tone Vays, given Bitcoin has protected $7700 levels, a break above $8500 would be very bullish. The price also bounced above the descending channel yet again lining the bulls up.
The 200-Day exponential moving average at $8150 is acting as the immediate resistance.
Is it another Bear Trap?
Leading on-chain and chart analyst are turning bullish with the present price action of BTC. Sawcruhteez and Willy Woo, tweeted on the on-chain analyst and LucidSAR indicator turning bullish on the weekly. Willy Woo further reports that his fund went long last week on on-chain cue. Bitcoin [BTC] price has gained 10% since opening around $7350 on a weekly scale.
It is possible that Bitcoin has begun another parabolic run as its trades above it’s supply and demand levels in the $7000 range. This range also marks the least profitable region for miners according to Woo.
However, strong inclinations towards one side have often been obliterated by whales in the past. Therefore, as the TA signals long, traders must look to hedge against high volume trade actions in the short term.
Do you think Bitcoin [BTC] will shoot past $9000 or go back to $6000 range? Please share your views with us.