Analysts: Why Bitcoin's Rise May Cause a Short-Term Reset
Bitcoin has risen sharply in the past few hours. Since the day candle closed on Monday, buyers have pushed the leading cryptocurrency up significantly.
While this move was crucially bullish and Bitcoin pushed the key resistance levels down by $ 8. 400 and the chance of Negative of a lower, higher or double high on the chart, analysts are concerned that a retracement could follow soon. Here are a number of reasons for this.
Three reasons why Bitcoin's recovery could decline
First, as crypto trader “CryptoISO” noted, the BitMEX funding rate has moved significantly into the positive range as long position holders now pay a relatively high fee to short position holders.
Been a while funding. pic.twitter.com/P7JdHv3szO
– CryptoISO (@crypto_iso) 14. January 2020
While this isn't a crucial bearish sign, former Wall Street analyst and bitcoin trader Tone Vays said in a new edition of his YouTube market analysis that he is concerned about the negative funding rate.
Second, NebraskanGooner, a prominent crypto trader and founder of Industry Exchange Level, recently noticed that his indicator (Top Goon X) recently printed a sell signal on the six-hour candle.
This indicator has been relatively strong in the past few months and has dropped to $ 6. 000 he signals in late November and mid-December, the massive higher 15% to 25% preceded movements that would have benefited swing traders.
Yes, BTC is currently above some key resistance levels that have limited price action in recent months. However, the Bitcoin price has to break through the large resistance region at around $ 9. 000 continue to gain momentum.
No reason to pretend like I have a crystal ball and know exactly what's going to happen next.
If you missed that move overnight, no reason to rush into anything now.
Couple scenarios here. Being patient with any new entry. Holding onto my spot BTC from $ 6, 700 for now. pic.twitter.com/8rxWNDMP99
– NebraskanGooner📈 (@nebraskangooner) 25. November 2019
Even if a bearish reversal to normalization of sentiment may be inevitable, there could still be some leeway before a possible sell-off takes place. The full-time trader Cold Blooded Shiller found that this recent move has allowed Bitcoin to crucially break out of a chart pattern. This outbreak suggests that BTC will recover another three percent toward $ 8 in the coming days. 800.
Proof of text: newsbtc