Bitcoin (BTC) is currently under heavy pressure from sellers. The price seems to have found support around the $7,800 mark that coincides with the support line of the triangle, but the volume is fading and buyers are nowhere to be seen. However, this does not mean that the bears are in full control. Bitcoin (BTC) closed the previous day above the support line after a long tug of war. This did scare most bears which resulting in most closing their Bitcoin Shorts (BTCUSDShorts) to lock in profits. This development was expected considering Bitcoin (BTC) had to go lower to retest the support line.
Bitcoin (BTC) is currently trading closely in a triangle and has almost reached a decision point where it must face life or death. It should be noted here that Bitcoin (BTC) may break below the $7,800 mark but shorting at this point is extremely risky. The correction slope is getting flatter with each cycle of lower highs and lower lows. If Bitcoin (BTC) succeeds in forming a higher low around $7,800 or $7,400, we can expect to see a rally to $10,000 from that higher low, most likely before the end of this month.
Bitcoin (BTC) has yet to breach a strong support line that appears to be forming a higher low. In most cases, Bitcoin (BTC) has usually fallen below the triangle in which it traded. However, this time around the situation appears to be different. The bearish sentiment is getting weaker by the day as the correction slope flattens signaling a reversal close by. However, serious bullish impetus is yet to be seen.
While the bulls may not seem to be around, there is no denying that a lot of investors are waiting to get their hands on Bitcoin (BTC). Many new investors or those who lost money trading cryptocurrencies do not seem to believe in dollar cost averaging. They like to buy in one go. So, most of them are waiting for the price to reach a ‘perfect bottom’ so they can buy in, being oblivious to the fact that a lot of other buyers are thinking the same thing. Anyway, institutional money has to see ample signs of not just the bear trend being over but also the bull trend to begin before they get involved. However, one thing is clear that a lot of buyers are waiting to get in.
The bulls did give the bears some hard time at the previous day’s close which scared most bears into closing their shorts resulting in BTCUSDSHORTS breaking and closing below an important support line. The next candle also remained below for a long time until it turned back green and rose above the support line again.
In times like these, Bitcoin (BTC) bulls seem to be around but they are not stepping up. It would be unwise for Bitcoin (BTC) bears to underestimate that for a lack of buying interest and go short. As we recently saw, the market makers allowed bears to take control so they could open shorts on exchanges like Bitmex. As soon as BTCUSDSHORTS peaked, a massive Bitcoin (BTC) pump followed which put most bears out of their positions. It is extremely risky to short Bitcoin (BTC) unless you are a market maker, because long term even most bears know that the price is going to go up.
We should also bear in mind that exchanges have a lot of influence to manipulate the price and most of the time they play margin traders like a fiddle. They might appear to do nothing to lure the bears in to think they are in control but soon as they put their money on shorts, the price shoots up. Some exchanges also work closely with market makers if they don’t want to get their own hands dirty. However, the fact remains that we are in an unregulated market and most exchanges do this because their livelihood depends on it. If Bitcoin (BTC) were to fall to $4,000 and continue trading in a close range for the next 2 years, chances are most people will forget about Bitcoin (BTC) and that would put them out of business.