Bitcoin price recently shocked most investors. Before this move went higher, and even during this period, many investors were selling Bitcoin through futures. This has been clearly demonstrated by the negative funding rates posted by Bitcoin futures markets, which shows active short sellers in the ascent.
BTC’s price action skepticism persists, even if $ 13,500 is held and the market stabilizes.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price could have a higher push as futures near, suggesting a price drop could begin
According to crypto trader AMD Trades, Bitcoin’s recent push has been higher while futures close, suggesting a possible bearish wave can begin. This relates to the CME futures gap theory, suggesting that CME futures traders re-examine any strong bulls or drops that BTC sees over the weekend.
“I think bitcoin is putting in a temporary top. Price action to the upside when futures are closed gives me the further indication that we’ll see a continued pullback into the election.”
He’s not the only one to claim that BTC is at either a short-term or local high.
Crypto-asset analyst “Light,” said that he thinks there is a confluence of three or four reasons why Bitcoin may be at a peak here.
They are as follows:
- Bitcoin has undergone three “drives-ish” into a major resistance level, the $ 14,000 macro resistance.
- Stocks have dropped massively over the past week in the face of pandemic uncertainty.
- The election on Tuesday could further compress returns as there is also political uncertainty.
- The Dollar Index (U.S. Dollar) is at a support level and could bounce to suppress gold and Bitcoin.
In his words:
“Short again on $ BTC, something about this weekend pump seems fishy. 3 drives-ish into major resistance, stocks shit the bed last week, election early next week, solid RR, and $ DXY on support. Still bullish overall, pullbacks are ‘t a bad thing. Let’s see what happens.”
Another cause for concern is that the “miners speculation” event is happening in the market.
A crypto-asset analyst recently noted that the Bitcoin network’s troubles are about to print out the worst era in months. In fact, this could be the fourth largest miner’s investment round. Some are concerned that this is down to the market.
You can see the Bitcoin price here.
The post Bitcoin price recent thrust higher while futures are closed suggests that a pullback may begin appeared first on AZCoin News.
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