Chop, Chop, Chop
Bitcoin Trading in "No-Man's Land"
Hope all is well. Not much has changed in the on-chain structure but I just wanted to give you a quick update of some key things I think are important to take a look at throughout the week.
We are currently range-bound between $32K-$40K. Right now a lot of traders are just buying support and selling resistance of the range. Until definite price action pushes us out of this range, traders are hesitant to take a directional position on both the long and short side.
The 200-day moving average is proving to be a key level for the market to regain, as we have been rejected off that average several times now. There are currently a lot of sell orders set between $37K-$38K and also at $40K which is just shy of the 200DMA.
Below there are a lot of buy orders currently set at $35K. Below that, $33K and $32K as well.
Although in the positive territory, funding remains low. Would like funding to stay low and preferably flip negative throughout the week. Wouldn’t be a great sign to see funding skyrocket quickly if price action starts to look attractive.
Keeping an eye on short liquidations as well. The size of short liquidations has been decreasing over the last week or so. A good push above some of those levels mentioned at the beginning ~$40K might trigger some stops or liquidations for the shorts still out there.
All in all, nothing too interesting to note. Just watching and letting the market make a decision at this point. Would just be prepared for some volatile price action whenever BTC pushes out of this current range in either direction. Looking forward to touching base Friday. Happy Memorial Day everybody. Cheers!
Thanks, Will. I think things are setting up nicely, with stronger hands buying from weaker ones/short term traders.
It seems Bitcoin sentiment has retreated significantly since the ATH. What do you think could influence a return to the bulls?
It seems unless an ETF gets approved and somehow the optics of BTC’s energy usage change in the zeitgeist we will be in crypto limbo for a while.
Would love to hear a justification for a rosier forecast if you have one. :)