Is the highest in for Bitcoin? Unlikely. A number of on-chain metrics confirmed that, though strongly bullish, this was not the highest for Bitcoin. Funding charges are excessive however the market shouldn’t be pushed solely by derivatives. The spot quantity has been excessive as nicely and so the market shouldn’t be but on the level the place the rally is solely pushed by derivatives. The overcrowded lengthy commerce may even see a burst to $64,000, though some pullback may very well be seen earlier than one other wave to $68,000.
Bitcoin 1-day chart
The charts confirmed BTC get away of a descending channel to climb again to $61,000 over the weekend, and on the time of writing was buying and selling at $59,750. Not proven on the chart, however an ascending triangle sample was rising, with the bottom at $53,000 and the next low at $55,900, whereas the resistance at $60,000 has held over the previous few days. This might see a transfer to $67,000-$68,000 within the subsequent week or two.
Nevertheless, there may be certain to be a liquidity hunt to the draw back earlier than a breakout – and the funding price may get exorbitant rapidly as all people tried to lengthy a breakout previous ATH. Therefore, the $58,000 and $55,600 are sturdy help ranges ought to a dip happen. A requirement zone at $53,000 has additionally been established.
The RSI was forming greater lows, displaying that bullish momentum was weakening. The OBV has additionally been comparatively flat in current days and has not but climbed above the highs seen in mid-February although the worth has fashioned the next excessive.
Buying and selling quantity has additionally been trending decrease, displaying consolidation was in progress.
The Chaikin Cash Move was shifting within the impartial space for almost 10 days now – one thing that final occurred on the each day chart in Might 2020, when Bitcoin consolidated on the $9400 space.
Leaping in on a protracted place upon breakout previous $60,000-$61,000 may lead to losses. Fairly, a pullback to $58,000 and even deeper to $56,600 can be utilized to scale into lengthy positions. Bitcoin Dominance can also be falling, and large-cap cash are performing strongly, displaying that capital is flowing from BTC to large-cap cash, that’s, cash with greater than a $2 billion market cap.
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