Bitcoin [BTC] failed three attempts at $10,000 in a span of one month. Yesterday, the rejection from the top was again violent to lows bellow $9100 causing $70 million long liquidations on BitMEX. The overall view of the market seems to have shifted bearish. It is also due to the coincidence of an equivalent drop in the stock markets.
BitMEX Traders Bearish
In the last 12 hours more and more traders are flipping their bias bearish, this is actually favouring the bulls.
The current Bitcoin rally is seemed to be built on retail (spot exchange) and rising institutional investment. Meltem Demirors, talked about the distribution of Bitcoin from exchanges to self-custody as the number of Bitcoins on exchanges has been decreasing drastically,
in crypto banking, we’re seeing more new services pop up that offer similar functionality but many of these still rely on a small number of back-end custodians in traditional banking, assets under custody = power in crypto banking, is it the same?
The market is currently in a tussle between bullish or bearish consolidation. The retail interest seems to be rising and the halving has added to the bullish pressure. Nevertheless, its’ correlation with gold and the ability to find support on the long-term bullish trendline will be essential for bullish continuation.
Technical View
Technically, the long-term view has turned highly bearish as Bitcoin broke down below the weekly resistance from 2017 top yet again. Nevertheless, on a daily scale, the uptrend is intact with higher lows on the chart. The price bounced off the 50-Day EMA (Exponential Moving Average) at $909x.
Prominent trader, Immortal Technique (alias) tweeted,
#BTC is currently below monthly open and 9.6k (key level for me).
The region around $9,900 to $10,400 is a strong area of resistance. According to the weekly, there is resistance around $9500-$9700, a potentially good area to build shorts. To the downside, the bulls will look for support $8500.
Derivatives and crypto trader, Tone Vays tweeted,
Waiting to buy a bigger $BTC dip or will pay the $10k breakout ‘eventually’
Do you think that it is time to buy to dip or there is more downside? Please share your views with us.
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
