BTC above $ 10,000: To sell, or not to sell?

BTC above $ 10,000: To sell, or not to sell?

By Roberto D. | CryptoFarm | 29 Jul 2020


TO SELL?...

In recent days Bitcoin has been characterized by a particularly strong and consistent price action. At the highs of last Monday's rally, the main digital currency was in fact traded up to $ 11,500 on the main exchanges.

In any case, it is too early to be able to draw very positive conclusions regarding a growing trend. Indeed, there are signs that BTC may undergo a strong retracement after reaching $ 11,500. And this despite the fact that BTC has already fallen by about $ 700 and above the Monday high.

 

But what are the signs that BTC may lose ground in the coming days?

The first is the presence of a potentially too large Bitcoin futures market, and is perhaps the most eloquent sign of the fact that Bitcoin could lose ground. In fact, traders have accumulated long positions on BitMEX in a very intense way, with a consequent peak in the financing rate.

Recall that the financing rate is the rate that long positions pay short positions to normalize the futures price to the spot price. Extremely high financing rates and a positive short-term delta suggest that Bitcoin buyers may have an excess of leverage.

Secondly, due to the Bitcoin rally over the weekend, it formed a gap in CME futures in the $ 9,600 - $ 9,900 range. Bear in mind that 77% of the gaps are filled within the week following their formation. So, based on this, there is a high probability that BTC will revisit the $ 9,000 in the coming days.

To the above can be added the purely technical bearish signals, as they are emerging from the graphs of the last minutes.

Of course, this does not mean that traders would do well to take a hedge position against Bitcoin. However, it would be advisable to try to take the appropriate countermeasures in this regard and, above all, to trade BTC in a more conscious and thoughtful way, avoiding being carried away by the wave of enthusiasm of a bullish movement that has not been seen for months.

... OR NOT TO SELL? 


Bitcoin above $ 10,000

Bitcoin has crossed the $ 10,000 limit, a threshold considered psychological by many analysts and which could lead the world's first cryptocurrency to new goals.

Monday BTC has reached and exceeded $ 11,000, a daily increase of $ 1,000 a day is completely rare.

To tell the truth, Bitcoin exceeded $ 10,000 on June 1, but only for a few hours, so this did not attract much attention, in fact the BTC returned to its price area around $ 9,000.

This time it was different, at the time of writing this article Bitcoin has already flown over $ 11,000 and it is not excluded that it can reach new targets.

 

Why has Bitcoin exceeded $ 10,000?

The question does not allow easy answers, but we will try to give concrete ones.

In the first place, Bitcoin has been too long in a price range and with little volatility, as if the market was waiting for a signal. In fact, the same movement could have been hypothesized even downwards, no forecast could be excluded.

Secondly, many short positions on Bitcoin closed on the weekend, for example on BitMEX short contracts were closed whose total amounted to 74 million dollars.

Thirdly, there has been a large transfer of money from altcoins to Bitcoin, which has broken the resistance to 10,000 dollars. Later, however, the altcoins also benefited, as we will see.


Capitalization of cryptocurrencies on the rise

The capitalization of cryptocurrencies has risen sharply. In just one week, it went from $ 277 billion to the current $ 324 billion. So we're talking about $ 57 billion in just 7 days.

In fact, after the upward movement of Bitcoin, the other altcoins also followed it. Today, growth is almost unanimous, with the exception of Ethereum which is experiencing a slight decline.

 

Read also: "The easiest guide to earn 10K Sat per day, every day"


What do you think about it? Is the price going to go up or down? Will you buy or sell? Let me know yours in the comments

As always, thank you if you have come this far, and see you next time!

 

 


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Roberto D.
Roberto D.

Born in Italy, I live in Italy, passionate about cryptocurrencies since I discovered ethereum in 2015 Telegram channel: https://t.me/dumbwaystoearn


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