Bitcoin / US Dollar Perpetual Inverse Swap ContractBitMEX
Description
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The last few hours has seen the market break to the downside, a short congestion zone, followed by the sharpest rally with good volume that we've seen in a while. On the retest we can see that some demand has entered the market as shown by even bigger volume followed by a reversal with the widest spread we've seen so far.
We're now watching to see how supply reacts to these two events. If supply dries up or fails to make a new low, it could signal a short-term trend reversal and we can enter a trading (not investment) position on the long side.
Comment
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We've just had a sign of strength. The market should now either consolidate or have a short-term rally, unless some major supply comes in shortly.