Bitcoin (BTC) calls for a “slightly bearish” rethinking of price actions as old support levels give way overnight.
Analysts sound the alarm about open interest
Data from Cointelegraph Markets Pro and TradingView showed Bitstamp hit a low of $ 55,640 on November 19.
Bitcoin has benefited from its lowest level in over a month and has not recovered much since then – and now price predictions are starting to change with it.
In its latest YouTube update, Filbfilb, an analyst with the trading platform Decentrader, warned that a 50-day and a 100-day moving average (DMA) could be all that can help bulls.
BTC / USD then fell through the first, leaving only the 100DMA at just over $ 53,000.
“I’ll definitely go spot-long again at $ 53,000,” he told viewers, saying the chances of winning the 100DMA protection award were “pretty good.”
This level is in line with Bitcoin’s market cap valuation of $ 1 trillion, which was previously considered permanent.
Filbfilb and others are now having problems with the still high open interest in Bitcoin derivatives despite the price decline.
He suspects this is due to traders taking long positions – and the result will either be a clean sweep over a rebound or a “flush” of their positions.
Funding rates also remained elevated on some major stock exchanges, suggesting the expectation of higher prices.
Whales (continue to) buy the dip
Elsewhere, some large-volume hodlers put their money where their mouth is.
Related: Traders Say Bitcoin’s decline to $ 57,000 is an “attractive entry point” for Hodler
The third largest BTC address has continued to buy this week, according to blockchain data. After the balance was increased by 207 BTC to $ 62,000, larger accumulations followed in the form of 1,647 BTC, 700 BTC and 484 BTC purchases.
As Cointelegraph also reported, those who have shopped in the past six to twelve months are still determined not to sell their coins.
Sales remained low even at all-time highs, with the year-old Hodl making up the largest share of current Bitcoin supply.