Bitcoin [BTC] Bulls Stopped at Key Indicator, as Futures Traders Seek Correction

bitcoin price accumulation

Bitcoin [BTC] price broke bullish in a whipsaw yesterday as bounced from 6,950 above $7k despite being in a downtrend. It recorded a daily gain of 5.6%, before it met with resistance from the 50-Day Moving average yet again.

On a weekly scale, as reported yesterday, the 100-Period moving average is likely to act as key support level, currently at $7200.

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

The price of Bitcoin [BTC] at 2: 30 hours UTC on 4th January 2019 is $7300. The over-all RSI (Relative Strength Index) on a daily scale is neutral, as it sky-rocketed to near over-bought levels yesterday above 60. The fear and greed index on the daily is still intact below 40.

Futures Market

The funding rate on BitMEX on a hourly scale suggest that the traders are inclined short before and after the rise. The funding rates were strongly negative before the pump.

As the price failed to break above channel resistance as well around $7450-7550, traders seem to be looking for a correction.

btcusd bitmex
BTC/USD 1-Hour Chart on Bitstamp (TradingView)

Nevertheless, on Huobi, the long-short percentages is seeing a drastic change with long inclination.

elite trader position
Elite Trader Position Comparison on Huobi

On Okex, as well, while the over-all funding rate is only slightly positive, the percentage of elite traders long vs. short is very high (58% long compared to 38% short).

The order book of these exchanges suggest the number of retail traders going short vs. high position traders is still massive.

bitcoin okex drop
Bitcoin Derivatives Open Interest on Okex

Moreover, the Open Interest (OI) on these exchange have dipped considerably since the pump yesterday. It also raises the suspicion that the rise could have been another deliberate short squeeze. Whereas, the US air-strike on Iran has strengthened fundamental spirits, the threat of a correction still looms at large.

Do you think spot (retail) and investment buying of Bitcoin [BTC] will resume? Please share your views with us. 

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