Based on the situation from the beginning of the year until now, it can be said that 2020 is an optimistic year for Bitcoin. The leading cryptocurrency soared significantly in early January as buyers pushed the price from as low as $ 6,800 to as high as just under $ 10,000.
However, it seems the bulls are starting to have a bit of conceit and this may be what the bear needs to spark the next remarkable sell-off.
An outstanding analyst now notes that long-delayed positions may soon be punished, as a multitude of different factors show that soon a large long squeeze will form, resulting in significant short-term downside.
Bitcoin continues to run toward $ 10,000 as the bulls maintain control
At the time of writing, Bitcoin is trading up 2% at the current price of $ 9,791, soaring from the daily low of around $ 9,300 set yesterday.
Bitcoin is now just waiting to enter the much-desired five-digit price area and this is still an important psychological price. The reaction of BTC to this extent can give us insight into the basic upward trend of 2020.
Cantering Clark, a well-known analyst, believes buyers may default at this time after considering the interest rates of cryptocurrencies, open positions (OI) and spreads.
I think the market is likely due to punish late longs soon.
Market is likely very long right now, as it should be, with the trend.
OI very high (with trend though)
Futs premium +400
25D Skew chart -> Sentiment - ST & LT very confident.$ BTC pic.twitter.com/90XYG8M9Ti
- Cantering Clark (@CanteringClark) February 6, 2020
“I think the market will punish long positions for delays. The market may be very long right now, because the trend is so. OI is very high (corresponding to trend). +400 difference fee. Skew chart 25 days -> Psychology - ST & LT very confident ”.
How far can the next BTC sell-off move go?
On how to squeeze long, Clark went on to explain that Bitcoin will basically drop by "its own weight," which would lead to a move of $ 700 to $ 1,000, resulting in a liquidation amount. significantly.
How though? Regard not like anyone is getting very aggressive lately.
We haven’t seen any major divergences in delta overall toward this recent high.
If anything, I suspect a roll over / fall under own weight i.e. Cascade of stops and liquidations.
A nice 700 - 1k move $ BTC
- Cantering Clark (@CanteringClark) February 6, 2020
“Unlike anyone who is becoming very active. We have not seen any major difference in the delta generally towards this recent high. If so, I doubt it will decrease by weight, creating stops and liquidations. Move 700 - 1,000 ”.
If this kind of movement occurs, it is very likely that the price will be catalyzed rapidly, sharply but it will also be strongly denied.
Bitcoin price today | Source: Coinmarketcap
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Minh Anh
Bitcoin Magazine | Cryptoslate
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