BTC: There’s Definitely Something to Keep an Eye On

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
The price has been moving in an upward channel since the beginning of 2020. Look at how the mid line of this upward channel has been rejecting the price. This is the main resistance as of right now. Until we break it, I could easily see us visiting the bottom of the channel (at least), which is in line with EMA50. Meanwhile BitMEX Funding rate stays at dangerously high levels. Not favoring the bulls.

BTC Weekly chart
The week is coming to an end and if this weekly candle closes like this, it will be SIGNIFICANT. Why? Because we’ll confirm a higher high and break above the 0.382 Fib & Major Horizontal S/R level (~9.6k).

The problem is that BTC has gone this high too fast. It feels like we are in a need of a pullback, but

-> Whatever resistance or a bearish chart pattern you’ve been drawing for a couple of weeks, they were broken to the upside and invalidated. This type of action is pretty reminiscent of what we had last year in April-June.

There’s definitely gonna be a correction for BTC . 10k is a very important level. If we close the weekly above it, the most bearish outcome I see is a slight pullback to 9.5k and after that we may easily make it all the way up to 11.5 region. Why exactly 11.5k? There is a pretty notable Gap on CME Futures .
So, we may not get a highly awaited pullback until we fill that gap.

There is no reason to be bearish , especially if we close the weekly above 10k. Closing the weekly anywhere above 9.5k is good enough to confirm a higher high on spot market. On the CME weekly chart a higher high was already confirmed as we closed above prior high.

Really important thing to keep an eye on is Open Interest. It keeps climbing up and now sitting at $1.11 billion! This means that we've yet to see the BIG move.

What do you think about it? Share your thoughts in the comments!

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Really nice channel plotted out :)
+2 Reply
CryptoBullet olleyg123
@olleyg123, thanks
CryptoBullet olleyg123
@olleyg123, I appreciate your feedback
CryptoBullet olleyg123
@olleyg123, thank you!
CryptoBullet olleyg123
@olleyg123, for your comment
CryptoBullet olleyg123
@olleyg123, it means a lot to us
Real nice analyse as usual. Love to learn more each time.
Please can you quickly develop more about the open interest. What's exactly? would love to learn more again.
+2 Reply
@EkoVah, Thank you!
@EkoVah, I appreciate your feedback
@EkoVah, Open Interest shows the amount of open positions on BitMEX
+1 Reply
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