I know ... I know ... a lot of us would like to erase that drop as fast as possible and continue the bull run, but what is stopping it?
We hear stories of whales buying the dip, of stable coins being moved to exchanges ready to buy Bitcoin ... So why don't they, and why is price not resuming its upward trend?
📉 THE BEAR SCENARIO
Well, we know that there is a lot of leveraged trading going on in the markets, and a lot of longs have been liquidated ... With the funding rate being at near zero, there is not much incentive to enter again, and we've had no convincing confirmation that the downward move is completely over. One would think twice before going long at these levels when not buying spot.
Other than that, we are currently at the level that started the last move up. Bears convincingly dropped below that level and are selling anything that tries to breach that level (at least the last couple of days). So we are still on the edge of that bear territory, and bears are still in charge. Some say we might even go test 20k again fi bulls can't break this level soon.
📈 THE BULL SCENARIO
For the bull run to resume, we'll need to break and close above that level on a daily timeframe. Ideally we'd have to go back above 45k USD and close a daily candle above that level. We'll need good volume to achieve that, but markets are slow now ... A hike of the funding rates (as much as I don't like leveraged trading), would definitely help.
On-chain analysts like Willy Woo and William Clemente III are convinced that the bull run is not over and that we'll reach six figure BTC before the end of this cycle. But if even news like $PYPL allowing crypto withdrawals is barely moving the markets, the big cannons will be needed to resume the bull trend.
⚠ STRENGTH NEEDED
Anything between 39k and 45k is No Man's Land and could take BTC up or down, depending on the strength of the buyer or seller activity ...
🙌🏽 THE GAME IS ON!
❓ Who do you root for? What is your view? Do you see us continuing the rally, or do you see us go further down? Let me know in the comments.
If you liked this analysis, a 👍🏽 would be appreciated.
We hear stories of whales buying the dip, of stable coins being moved to exchanges ready to buy Bitcoin ... So why don't they, and why is price not resuming its upward trend?
📉 THE BEAR SCENARIO
Well, we know that there is a lot of leveraged trading going on in the markets, and a lot of longs have been liquidated ... With the funding rate being at near zero, there is not much incentive to enter again, and we've had no convincing confirmation that the downward move is completely over. One would think twice before going long at these levels when not buying spot.
Other than that, we are currently at the level that started the last move up. Bears convincingly dropped below that level and are selling anything that tries to breach that level (at least the last couple of days). So we are still on the edge of that bear territory, and bears are still in charge. Some say we might even go test 20k again fi bulls can't break this level soon.
📈 THE BULL SCENARIO
For the bull run to resume, we'll need to break and close above that level on a daily timeframe. Ideally we'd have to go back above 45k USD and close a daily candle above that level. We'll need good volume to achieve that, but markets are slow now ... A hike of the funding rates (as much as I don't like leveraged trading), would definitely help.
On-chain analysts like Willy Woo and William Clemente III are convinced that the bull run is not over and that we'll reach six figure BTC before the end of this cycle. But if even news like $PYPL allowing crypto withdrawals is barely moving the markets, the big cannons will be needed to resume the bull trend.
⚠ STRENGTH NEEDED
Anything between 39k and 45k is No Man's Land and could take BTC up or down, depending on the strength of the buyer or seller activity ...
🙌🏽 THE GAME IS ON!
❓ Who do you root for? What is your view? Do you see us continuing the rally, or do you see us go further down? Let me know in the comments.
If you liked this analysis, a 👍🏽 would be appreciated.
Check out my FREE indicator scripts:
► www.tradingview.com/u/Nico.Muselle/
Twitter: twitter.com/NicoMuselle
► www.tradingview.com/u/Nico.Muselle/
Twitter: twitter.com/NicoMuselle
