Bitcoin is still trending upwards short term, but it is approaching a range where it may be sold off.
Reasons:
Logarithmic trend line
We are approaching historical horizontal support/resistance zones or I like to think of them as zones of liquidity.
The upper 7000s range
The 8.5k area
The lower to mid 9000s range, where we bounced many times mid to late last year
We also have the top of the descending channel we have been in since the 14k blow off top -- on the linear scale.
This most recent rally has also been seeing a decline in volume.
This may be showing us that institutional money has already secured their long positions, and that they are now relying on retail traders to push the price up.
By:
either getting them to squeeze each other out of their shorts, or by FOMO longing.
(Perpetual contract prices have been shown to be important in price discovery for BTC)
This would allow them to distribute their bitcoin at 'unnaturally' high prices.
This is just my two cents, but we have been seeing this type of action in the space for a while now.
Reasons:
Logarithmic trend line
We are approaching historical horizontal support/resistance zones or I like to think of them as zones of liquidity.
The upper 7000s range
The 8.5k area
The lower to mid 9000s range, where we bounced many times mid to late last year
We also have the top of the descending channel we have been in since the 14k blow off top -- on the linear scale.
This most recent rally has also been seeing a decline in volume.
This may be showing us that institutional money has already secured their long positions, and that they are now relying on retail traders to push the price up.
By:
either getting them to squeeze each other out of their shorts, or by FOMO longing.
(Perpetual contract prices have been shown to be important in price discovery for BTC)
This would allow them to distribute their bitcoin at 'unnaturally' high prices.
This is just my two cents, but we have been seeing this type of action in the space for a while now.