- Bitcoin longs traders vow to keep liquidating and buying the dip; reversal is anticipated in the near-term.
- Technical indicators suggest that the strong grip by the bears is likely to continue in the coming sessions.
Bitcoin short-term trading ideas I discussed yesterday were helpful to some ascertain limit. Although the prediction was that Bitcoin could revisit $9,200 due to poor fundamentals, Bitcoin bears outperformed themselves by pushing the price under $9,000 and extending the bearish leg below $8,500.
In today’s short-trading ideas, traders should keep watching the dips and buying them. This because demand is being created at lower levels. This will, in turn, strengthen the fundamentals including positive volume and volatility levels towards the month of October.
XBT/USD Technical Picture
Bitcoin finally broke the descending triangle pattern as has been discussed numerous times in the cryptocurrency space. The dump correlated with a repeated trend in the moving average convergence divergence. The MACD hit the same levels on August 15 when a meltdown tested $9,500 after correcting from $10,500 in less than three days. The Signal is still strongly bearish as an indicator for possible dumping in the short-term.
XBT/USD 4-hour chart
The price is below the moving averages with the 50 MA on the four-hour chart increasing the gap between below the 100 MA. The dominance by the sellers is likely to spread into the coming sessions with recovery hampered at $8,600, $8,750 and $8,800 levels respectively. The high volumes suggest that negative volatility must be fought by any means if Bitcoin is to return above $9,000 in the short-term.
BitMEX the largest derivative trading for Bitcoin in the cryptocurrency market has seen $7 million of longs liquated. In the last six hours, alone $3.4 million longs were liquidated in comparison to 548k shorts. This clearly shows that traders want to buy lower as they anticipate a ballistic correction likely to hit levels above $10,000 towards October.
XBT/USD Technical Levels
Spot rate: $8,485
Relative Change: -49
Trend: Generally bullish
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige