Bitcoin Traders Remain Bearish

Bitcoin is at a point where it has to make a big move that would be decisive. So far, the near-term outlook remains unchanged and we continue to expect limited upside. The S&P 500 (SPX) shares a similar outlook which indicates that we could see a move higher from here in the cryptocurrency market. The vast majority of traders at this time are bearish. We have a rising number of unhedged shorts which is not a good sign for the bears near-term.

The fractal that is currently in the making on the S&P 500 (SPX) indicates that we are close to beginning a downtrend but short-term we could expect upside. That being said, it is important to realize that the larger trend is bearish and for that reason we need to be focused on that. The EUR/USD forex pair has just rallied past a key resistance and has now flipped it as support which is another reason why we could expect further upside in BTC/USD and the rest of the cryptocurrency market.

Altcoins could gain more ground against Bitcoin near term if we see a move past the 200-moving average on the 4H time frame in BTC/USD, paving the way for a bullish breakout. The downtrend in Bitcoin dominance (BTC.D) indicates that altcoins could rally against Bitcoin for now. Meanwhile, BTCUSDLongs/BTCUSDShorts ratio is rising again which indicates that it could form a double top corresponding to a rise in the price of Bitcoin near-term.