As a seasoned analyst with over two decades of trading under my belt, I’ve seen market cycles come and go, bull runs and bear markets alike. I’ve learned to read charts like some people read books, and I can sense when the market is about to take a turn, much like how a dog senses an approaching storm.
Looking at Bitcoin‘s current chart, it’s clear that the $100K resistance level has proven to be a tough nut to crack for now. The daily chart shows a consolidation phase, and the 4-hour chart suggests a potential drop towards the $90K support level before any bullish continuation.
The open interest metric in the Bitcoin futures market is also at all-time highs, which historically has been a sign of potential volatility. This could mean that we might see some fireworks in the near future. However, as the saying goes, “Buy the rumor, sell the news,” so I advise investors to be cautious when investing in Bitcoin at this moment.
As for my joke, let me share a little story from my early trading days: Back when I was just starting out, I had a mentor who always said, “The market doesn’t care about your feelings.” I remember one time, after a particularly bad day of trading, I came home and told my wife that the market hated me. She looked at me and said, “Ed, the market doesn’t even know you exist!” And she was right. The market doesn’t care about us as individuals; it just keeps moving, indifferent to our hopes, fears, or dreams. So, let’s ride the Bitcoin wave with a cool head and a warm heart, because even if the market doesn’t love us, we can still love the market!
The price of Bitcoin has struggled to maintain its rising trend after falling beneath the $100K barrier. This has sparked much debate about what will happen next with the cryptocurrency’s price movement.
Technical Analysis
By Edris Derakhshi (TradingRage)
The Daily Chart
On a day-to-day basis, the price has been holding steady below $100K, having momentarily surpassed it and establishing a new peak a fortnight back. Lately, however, attempts to exceed $100K have failed, resulting in a pushback towards lower prices.
In the near future, it seems probable that the $90,000 mark could serve as our immediate goal for Bitcoin’s price movement. How the market reacts around this level will shape the short-term trend in prices.
The 4-Hour Chart
In every 4 hours, we can see a more distinct pattern of the market moving sideways. Previously, the market had been forming higher peaks and troughs within an upward-sloping channel.
Although it initially adhered to an uptrend, the market has since deviated from this trend and tested its downside twice. Moreover, with the Relative Strength Index (RSI) indicating bearish momentum at less than 50%, there is a strong possibility that the market will fall towards the $90K level before potentially resuming its bullish movement.
Sentiment Analysis
By Edris Derakhshi (TradingRage)
Open Interest
Over the past few years, the Bitcoin futures market’s overall sentiment has provided useful foresight, enabling analysts to anticipate short-term price fluctuations more accurately. The following graph showcases the open interest statistic, representing the cumulative number of active perpetual future contracts across derivatives trading platforms.
According to the graph, the open interest values are reaching record levels, despite the market falling below $100K and halting its upward trend. This might suggest imminent price fluctuations due to liquidation surges. Therefore, it’s advisable for investors to exercise caution when investing in Bitcoin currently.
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2024-12-29 21:50