Since Bitcoin crossed over $92k at the end of November, the price has touched this level multiple times. Some take it as a market warning about an upcoming btc fall while others believe it to be cementing its support here. Market sentiments are fearful but investors see it as an opportunity. What is happening with bitcoin right now? Let’s try to uncover.
The Bitcoin Charts
Bitcoin has been receiving good support at $92,300 level. We can see BTC making lower highs. Also, a trend line can be found passing through the lows. On Monday, the price fell below $90k for the first time since November 18. RSI was playing along with the price for a long time, however it caught a diversion. When the price made a lower high around $102k during 6-7 January, the RSI made a higher high against it. The relative strength indicator was also pointing towards oversold.
Assets need a cool off after such an event. Moving Average 200 is riding above all the averages and acting as the strongest resistance. The MA have inverted their positions with MA 200 at the top and MA 20 at the bottom.
Other Metrics
According to total liquidation data by coinglass more than 202,800 traders got liquidated in the last 24 hours. On closer inspection, we can see that in the initial 12 hours, it was the long traders who were getting liquidated, however in the last 12 hours, the market has shifted the wind. Market has seen liquidation of short traders in the recent hours.
The Bitcoin Long Vs. Short ratio is at 1.1954 indicating long traders are gaining confidence. 54.45% of the total open futures trades for BTC are longs and 45.55% are short trades. But this can also be a sign of another upcoming liquidation as market is not in a clear state.
What To Expect
The market sentiment is somewhat fearful as the fear and greed index was recorded at 46 today. Generally this causes bears to take charge of the market. We know market sell off creates panic and this opens doors of opportunities for investors to fill their bags. Social media is flooding with keywords like 90k, selling and buying the dip. The market is trying to push up however resistance has it buried deep. What do you think is going to happen in the market?
