Bitcoin price gains fail to stick, negative technical bias builds
Bitcoin price gains fail to stick, negative technical bias builds
Bitcoin Technical analysis, overview, strategies, and levels
It was a red week for Bitcoin’s price, but of little surprise given how the gains were formed in the first place, as a retraceable move back down has been the norm following any sudden surge in the cryptocurrency’s price. Thus far, the consolidatory and slow moves back down have been befitting for its negative technical bias, but not reaching the significant volatility we’re accustomed to seeing in cryptocurrencies. Early signs of a bear trend channel are forming as seen on the weekly (and to a certain extent daily) chart. A negative DMI (Directional Movement Index) cross occurred last week, and its price is back below all its main short-term moving averages (but still above all its long-term moving averages.
IG client and CoT sentiment for Bitcoin
In sentiment, retail bias is extreme long and little changed since the start of last week, rising a notch to 83%. Meanwhile, the CoT (Commitment of Traders) latest report shows a rise in majority short bias to 60% on a reduction in BTC longs by 357 lots and a similar 407 lot reduction in shorts.
Bitcoin weekly chart with institutional sentimen
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