Bitcoin [BTC] Price Action Recalls the Bears, as Bounce above $8,500 Keeps them at Bay

Bitcoin [BTC] eminent pull-back seems to have finally occurred and the whales seems to have timed a large shake-shout of long orders. The Price Action (PA) logs one of the longest spinning tops on the daily with the high at $9,188 and low at $8,480.

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

As reported earlier this morning, the break above the 200-DMA was a strong positive signal. However, the long orders seems to have been squeezed by the whales with a strong rejection.

BitMEX Liquidations

Datamish reports over $110 million shorts liquidation in the last six hours. Moreover, the shorts liquidated with the break above $9,180 were only about $20 million in size.

Now, price seems to have found support above the 50-Period moving average on the 4-hour chart. Hence, the flash move could be a blip in the a long term scale, if the trend picks up again.

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btcusd bitstamp
BTC/USD 4-Hour Chart on Bitstamp (TradingView)

According to derivatives and crypto trader, Zoran Kole. his trading systems still protects the bullish outlook in the long term. He tweeted,

…Imo, it looks like a shakeout and not trend reversal. Invalidation below 84xx

Trader Josh Rager also expressed similar sentiments as he continues to stick to his bullish bias. Rager tweeted,

$BTC pullbacks should be expected The important thing to keep an eye on is the market structure and the trend change. Price would likely bounce at low $8ks Unless price made its way down past $7700, I wouldn’t worry

However, the short interest in the market seems to be growing with funding rates on futures and derivatives exchange going negative on most exchanges. Traders will be looking to protect the swing above $7500-$7800 for a complete reversal in the trend.

bitmex order ratio
Long/Short Order Ratio on Okex

The CME futures market opening is due in the next three hours. As it stands now it is going to open with a bearish gap of around $300 as the closing on price was $8,925.

The volatility and uncertainty in the trend is expected to continue as traders look for gap filling, while bears will seek to watch levels around $8200.

Do you think the pullback was temporary or the bears will take control? Please share your views with.

Bitcoin [BTC] Price Action Recalls the Bears, as Bounce above $8,500 Keeps them at Bay
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Bitcoin [BTC] Price Action Recalls the Bears, as Bounce above $8,500 Keeps them at Bay
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Bitcoin [BTC] eminent pull-back seems to have finally occurred and the whales seems to have timed a large shake-shout of long orders. The Price Action (PA) logs one of the longest spinning tops on the daily with the high at $9,188 and low at $8,480. 
Nivesh Rustgi
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Author: 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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