Bitcoin prices continue to stabilize above the $32,000 level, with buyers entering the market on each dip. As frustration begins to build for the bears, upward price pressure is finding a wall of selling above $35,000.
This has led to a stalemate, with neither force strong enough to break the deadlock. In a rare scene, Bitcoin has actually been trading in a 'tight' $800 range for much of the day.
With a succession of higher lows, the market looks poised to resume its uptrend, however, as the miners' position index shows, buyers are finding that all of sudden there is plenty of liquidity as fresh supply continues to hit exchanges and dampen the bulls' best efforts.
We still have a full month to go before the start of the Chinese new year, which historically has seen increased selling from miners in the run-up to the holidays. It could be that with prices resting comfortably above $30,000, the selling has started early and is preventing the market from trading higher. We will be keeping a close eye on this metric as the index approaches its November highs.
Today's price action has seen Bitcoin sit within a tight trading range. $35,385 has capped the upside, whilst $32,300 has again limited the bear's aspirations.
A continuation of range bound trading can be expected as the market decides if the next move is $40,000 or $30,000.
The upside comes into play once the bulls push prices past $35,868. $38,180 will act as the first brake on an advance to $40,000 and the current ATH of $41,794.
On the downside, the bears will be looking to take the market below $32,300 and onto a sub $30,000 print, with $29,980 the next target. $29,900 and $28,000 will act as a floor on bearish ambitions.
It looks like crypto isn’t correlated to traditional markets, at least not during this past session.
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