Bitcoin’s rise above $10,300 level was much shorter than anybody would have expected. In some exchanges, BTCUSD dropped to $8,600. The decline took less than six minutes.
BTCUSD recovered from the decline and kept trading around the $9.7k range. However, it recently dropped below the long time support at $9,621.
BTCUSD technicals indicate further trouble
BTC is currently trading at $9,610.35. It is also below the 20-period Exponential Moving Average in the BTCUSD four-hour timeframe.
BTC is clinging to the upper trendline. Falling below this trendline might bring a much more profound drop. Day traders are likely to take short positions on BTC.
The 20-period Simple Moving Average line is at $9,667.80, and the 20-period EMA is at $9,677.87. Therefore, as per the Moving Averages, BTCUSD is bearish in the short-term.
The Relative Strength Index or RSI, is tipping down. It suggests increased selling pressure, which is another bearish indicator. The MACD is giving a bearish indication as well.
However, it is essential to note that in the long term, BTCUSD still is Bullish. And any investor looking to beat the deflation, in the long run, should buy and hold BTCUSD during a fall.
Check BTCUSD Chart on tradingview.
Open interest in the BTC futures gives strong signals
The data published by Skew, the cryptocurrency analytics firm, shows that the open interest in the June Futures for BTC has significantly increased. It is as if BTCUSD is playing catchup with the magnificent increase in the Dow Jones and the S&P 500.
It could be interesting to understand the bifurcation of the data. The OI in the short positions is increasing, while the longs are getting liquidated. It suggests people are more bearish in the immediate term for BTCUSD.
