Bitcoin’s recent recovery has reignited bullish sentiment among crypto trading groups, but simultaneously, short positions are increasing on major exchanges like Binance and Bitmex.
This growing divergence is creating a complex landscape for traders, as Bitcoin continues to hover below a crucial technical level.
Historically, Bitcoin trading above its 200-day moving average has been a strong indicator of potential returns. However, when it falls below this key level, sharp corrections often follow.
Currently, Bitcoin has been stuck under its 200-day moving average of $64,000 for over a month. This extended period below the average suggests the potential for a deeper correction, possibly towards Bitcoin’s Realized Price of $31,500.
Further compounding this uncertainty, the Bitcoin Exchange Volume Momentum shows a decline in on-chain activity related to exchanges. This decrease in volume hints at reduced investor interest in Bitcoin, which could further dampen any potential for a strong recovery in the near term.
The TD Sequential indicator on Bitcoin’s 12-hour chart has also flashed a sell signal, indicating that a brief correction might be on the horizon. While this signal may suggest caution for bullish traders, it’s still unclear whether a larger downtrend will follow.
On the institutional side, the total net inflow of Bitcoin spot ETFs on September 12 was $39.0239 million. Notably, Grayscale’s ETF GBTC saw an outflow of $6.5123 million, while its mini ETF BTC experienced a $5.1771 million inflow. ARKB registered an inflow of $18.3424 million, and Fidelity’s ETF FBTC saw a positive inflow of $11.4651 million, indicating ongoing interest from institutional investors.
Despite the mixed signals, the market remains in a delicate balance as traders weigh the potential for a significant move in either direction.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
Image Source: phive2015/123RF // Image Effects by Colorcinch
Analysts Forecast Major Price Gains for Cardano and IntelMarkets; Tron Hits Another Milestone The Tron…
ADA Whales Bullish on Hybrid TradFi Token as Presale Erupts Past $2.6M; XRP Shows Strength…
The price of Bitcoin has remained stable at around $59K in the past 24 hours.…
In the cryptocurrency market, known for its extreme volatility, token prices can vary dramatically. The…
Qubetics Presale Ready to Redefine the Future While Arweave Price Decline and Theta's Rapid Trading…
Last week saw significant shifts in Smart Money accumulation trends. Notably, $TURBO has now joined…