Bitcoin has fallen back to its support level today, with prices sitting precariously just above the key $58,850 mark. The bears will be growing in confidence, the bulls have protected this level, but have failed to climb BTC back above $61,750, which is creating the appearance of weakness.
With Friday’s option expiry looming, those long puts will be hoping the bears can break the line and push prices back towards $56,000.
Structurally, nothing has changed. Bitcoin continues to leave exchanges at pace, expediting the supply concerns, as balances held on exchange to levels not seen since August 2018.
The network itself remains healthy, with the hash rate moving back towards all time high and removing all memory of the summers hash-crash.
The natural ebb-and-flow of price, has replaced the bullish moves seen through October and early November, and traders are slowly becoming used to the idea that consolidation, and a retracement from the ATH, is a good thing, and allows for the market to settle before the next move.
Obviously, they all hope that is upwards, but there maybe a few more twists in this bull run just yet!
Bitcoin has continued its sideways trading pattern today, with prices bouncing off support at $58,850. A quick dip below was quickly countered as the bulls continue to soak selling pressure.
The market will need to close above $58,850 to frustrate the bears. Their continual probing of lower levels has so far failed to prove successful, but one close below $58,850 will increase their confidence and prices will move down to $56,670.
The persistence of the dip buyers at $58,850 has created a solid buy wall. Any rally away from these levels will likely be quick, with $61,750 the key point for the bulls to surpass. $64,890 awaits as short sellers find the going tough, and likely experience the auto liquidations normally reserved for the longs.
It looks like crypto isn’t correlated to traditional markets, at least not during this past session.
Investors aren’t ready to give up on equities yet.
Last week, inflation data exceeded analysts’ forecasts and jumped by a good margin. This spooked investors who sold risk assets, and it saw major US equity indexes break a 5-week winning streak.