Investors’ cost base narrowly escapes a support/resistance flip as traders diverge on whether Bitcoin has truly bottomed out.
Bitcoin (BTC) dipped below the $19,000 mark on Oct. 11 as crucial support saw its first pullback in a week.
BTC shorts are “priority” on shorter time frames
Data from Cointelegraph Markets Pro and TradingView trailed the BTC/USD pair seeing local lows of $18,962 on Bitstamp.
A subsequent bounce brought the $19,000 level back to flat for the next six hours. At press time, the pair was trading around $19,100.
Analyzing activity on the Binance order book, the on-chain analysis resource Material Indicators predicted an incoming bout of comparatively volatile price action in line with “an increase in bidding volume and whale activity.”
An additional printout of the order book for the BTC/USD pair He showed additional support built between $19,000 and $19,200, positions that proved unreliable given the price action thereafter.
Popular Crypto trader Tony remained firmly on the side of caution, preferring to go short BTC on the day.
“I won’t be even slightly bullish until we see a solid breakout of the downtrend line,” said to his Twitter followers along with a price chart:
“At the smallest upside most people become too bullish. Not a good sign in my opinion… Short positions are the priority at the moment.”
As Cointelegraph reported, $19,000 remains an extremely influential price zone for those looking for lines in the sand to market, representing the global cost base across all investor categories.
Faith in June lows remains
With the general consensus in favor of a further drop, those who believed that Bitcoin’s latest macro bottom – the pullback to $17,600 in June – would endure were few and far between.
Among them was the popular trader, Crypto Kaleo, who argued that the market was already in the Wyckoff-style “accumulation phase” that follows the bottom.
Therefore, those who expect Q4 2022 to mirror the bottom sequence of the 2018 bear market will be disappointed.
“I’m seeing more 2018 bear market fractal comparisons being used for this range, and I’m really not a fan of the idea at all,” commented Kaleo:
“In my opinion, we have already seen that major break. We are in the accumulation phase. The Mark Up will catch everyone off guard.”
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