After a crazy week, yesterday we closed a Bitcoin at the $50,000 level. After more than 2 years, it feels good for all the wallets that have endured this bearmarket.
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A crazy week! 50000 BTC
Last week was green, green, green, and was concluded at the start of this week by a Try/Goal/KO/Ippon – in short, choose your sport – by the final push to $50,000 that absorbed thousands of Bitcoin waiting to be sold on the spot market!
This latest attack went above $50,000, a psychological resistance (round number) that is having an effect and is confirmed by the sales data on the spot market that can be observed on Mobcharts in particular:
The yellow line alone represented a 500 Bitcoin barrier to sell on this resistance zone. No wonder we’re having to huff and puff to absorb this price now.
Why does Bitcoin need to blow off some steam?
The indicators are clearly starting to show signs of running out of steam. We’re certainly no longer going to retrace as we used to by several dozen percentages. On the other hand, it wouldn’t be surprising to see a pause or even losses to liquidate aggressive portfolios.
Bitcoin Orderflow – Whales on sale
It’s him above all that gives me this short-term seller’s bias. For two very specific reasons!
The first is the whale movement. These are selling Bitcoin as leverage, which is usually a local top signal over a few hours/days.
We can see that the long/short ratio is decreasing, indicating that the trend is towards selling on this upside, with the number of positions growing steadily. This shows that big sellers are setting up leveraged positions, generally to cover or prepare the ground for future downside. It would therefore be appropriate for short-term traders to take profits on this position.
Bitcoin Orderflow – Sentiment is bullish
Bullish sentiment is bearish. Positive sentiment is more of a bearish signal. How can you tell?
I use spreads to analyze sentiment. When they are positive, this means that the leveraged price is higher than the spot price, indicating bullish sentiment. Conversely, a bearish spread means that the leveraged price is below the spot price, indicating bearish sentiment. And as players are often wrong, we tend to go in the opposite direction.
Here, bullish sentiment has returned, so we’ll need to calm it down to continue the climb.
Conclusion
In the short term, there’s little doubt that the price of Bitcoin will fall. Pull back where? That’s the question, either below the lows to quickly chase away aggressive buyers, or deeper to retest the resistance we’ve just left at the $45,000 level. In either case, observing spreads could be a good way of anticipating a bullish comeback.
I hope you found this article useful! See you next week for even more analysis!
Entrepreneur & Dad, passionate about cryptocurrencies, I describe for you the technical analysis. Cofounder of Cryptocademia, a free platform to learn all you want/can about blockchain ! Meet you there at https://www.cryptocademia.com
My job: look at charts and interpret them for you.
Beware, I do not know all the truths.
