Bitcoin (BTC) needs a “slightly bearish” rethinking for its price action, as its old support levels give way overnight.
Analysts Sound the Alarm on Open Interest
Data from Cointelegraph Markets Pro and TradingView showed a low of $ 55,640 for the main cryptocurrency on Bitstamp on November 19.
Being its lowest level in more than a month, the price of Bitcoin has failed to rebound significantly since then, and now the price forecasts are starting to change.
In his latest YouTube update, Filbfilb, an analyst at trading platform Decentrader, warned that the 50- and 100-day moving averages (DMAs) may be all that can help the bullish momentum.
The BTC / USD pair then fell through the first, leaving only the 100DMA just above $ 53,000.
“I’m definitely going to go spot long at the $ 53,000 mark again.”, he told his viewers, after commenting that the chances of 100DMA protecting price were “reasonably good.”
That level matches Bitcoin’s $ 1 trillion market cap valuation, something that was previously held as permanent.
In the meantime, what is causing problems for Filbfilb and others is the still high open interest in Bitcoin derivatives despite their falling price.
Suspect that This is because traders are taking long positions, and the result will be a clean sweep through a bounce, or a “wash” of their positions.
Funding rates also remained high on some of the major exchanges, indicating that prices are expected to rise again.
Whales (keep) buying during the fall
On the other hand, some of the big holders are acting on their words.
According to the blockchain data, BTC’s third largest address has continued to buy this week. After increasing its balance by 207 BTC to $ 62,000, larger accumulations followed in the form of purchases of 1,647 BTC, 700 BTC, and 484 BTC.
As Cointelegraph also reported, Those who bought in the last six to twelve month period are still determined not to sell their coins.
Even at all-time highs, selling remained low, and the one-year hodl represents the largest proportion of the current Bitcoin offering.