Bitcoin (BTC) recently consolidated between USD 97,000 and USD 99,000 levels, but was unable to rise above the psychological resistance level of USD 100,000. Overnight, Bitcoin fell from $98,000 to below $93,000. Three indicators now indicate that further declines are possible, to levels below $90,000.
Investors are buying more BTC short options
Bitcoin is down 5 percent from its recent record high. This has caused more and more traders to lose their risks by taking short positions. Data from CoinGlass show that 51.6 percent of options traders opt for short options, which indicates bearish sentiment in the short term.
This bearish sentiment shows that investors are increasingly confident about a near-term bitcoin rally. As a result, analysts expect a price correction to occur before the bulls buy again in the pit. Usually when the price rises significantly, a correction or consolidation phase is needed to ensure a sustained rally, which seems to be the case here.
Coinbase Premium Index is negative
The Coinbase Premium Index, a key indicator that tracks the relationship between the price of bitcoin at Coinbase pro and Binance, has turned negative for a while, according to data from CoinGlass. Coinbase is popular in the US and among institutions, while Binance is popular worldwide. The fact that the ratio has become negative means that American and institutional interest is declining.
American and institutional interest was very high after Donald Trump’s victory in the US presidential elections, but has now reached a low point. This seems to be the result of a recent downturn. Although the index has recently been revamped, it has not yet returned to its original glory.
The RSI exchange rate has risen against Bitcoin
Bitcoin is currently experiencing a Relative Strength Index (RSI) divergence, meaning that the price of bitcoin has been moving in the opposite direction to momentum. Last Friday, Bitcoin saw a high level, while the RSI did not, indicating that momentum is declining.
However, according to other indicators, the bull run does not seem to be completely over yet. As we mentioned in previous crypto news three reasons know why the bull is not over yet. This shows that it is still possible for bitcoin to bounce back and rise further. However, this may require a price correction first. In any case, we will keep you informed about the most important developments via WhatsApp – we followed like thousands of others.
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2024-11-26 20:50:00
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