Bitcoin [BTC] Price Holding onto a Threat @ $6900 with Futures Traders Still Short

bitcoin dips thread

Bitcoin [BTC] price broke below $7,000 which was further followed by heavy selling driving the price to the last area of demand around $7,000.

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

In simple terms the current sentiments of the traders can be expressed in this tweet by derivatives trader, XC,

Say the breakdown after we lose the 7.05k support, watching 6.8 for now but weekly doesnt look great. Longer term target of 5.8-6.2 is still on the table. $BTC

As reported yesterday, the analysis on higher time frames (weekly and monthly) look weak. A close below the 100-period MA on the weekly and $6800-$6900 would drive the price of test swing lows around $6400.

The price of Bitcoin [BTC] at 2: 45 hours UTC on 3rd January 2019 is $6930. The low recorded in price yesterday was at $6853.

The drop which occurred during the last 8 hours on 2nd Jan 2020, caused a series of long liquidations around $6,900 at the BitMEX (> $40 million), Huobi, and Okex.

The long/short ratio and BTC basis on Okex dipped steeply from its bullish sentiments yesterday closing the gap between long and short.

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

The funding rate on these exchanges are negative as well, signalling a short inclination of the traders. The Open Interest (OI) on Okex and Huobi is also witnessing a rise in the OI since yesterday, the sellers seem to be making the move with a strong stance.

Bitcoin Open Interest on Huobi

Hence, currently, 6,800-6,900 acts as a possible region for swing lows. However, a trade at the current support level could well be a gamble, with the weekly closing due soon.

Nevertheless, fundamentally the network reached its ATH Hash Rate yesterday above 119 TH/s which is a strong indicator of its growth.

On global marco, Gold and S&P continues to be bullish recording gains yearly in the year. Bitcoin, on the other hand, is performing independently of the global assets, which creates further selling pressure.

Do you think that Bitcoin will be able to hold support at $6900? Please share your views with us. 

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