Bitcoin demonstrated bullish signs as it traded below $90,000, amidst large investments in crypto shorts by institutional traders.
Key Takeaways:
- Increasing short positions ahead of the Wall Street market.
- Significant resistance noted at moving averages as Bitcoin struggles at $90,000.
- Bullish divergences are forming against gold and USD.
Bitcoin Trading Insights
Market data indicates that BTC/USD is down approximately 1% as Wall Street opens. TradingView reports a lack of momentum following a failed attempt to breach the $90,000 level while gold prices soar.
BTC/USD one-hour chart
Source: Cointelegraph/TradingView
Traders have noted a bearish trend with Bitcoin facing resistance at key moving averages.
“If this wants to get out of this choppy range, that would be the first level that needs to be broken on the upside.” - Daan Crypto Trades
BTC/USD four-hour chart
Source: Daan Crypto Trades/X
As Bitcoin’s price fluctuates, a whale reportedly opened substantial short positions on Bitcoin, Ethereum, and Solana, collectively amounting to nearly $250 million.
Market Predictions and Trends:
- Signs of a bullish divergence are appearing in the three-day chart, suggesting potential recovery for Bitcoin.
- Reactions in the market are split as gold approaches unprecedented levels, diverging from Bitcoin price stability.
“Liquidity is thinning meaningfully as traders close out positions ahead of the holidays.” - QCP Capital
This article does not provide investment advice. Market dynamics can be risky and cautious research is recommended.
