Key Takeaways
Bitcoin and the market overall are getting boring. The price is bound to move we’re just missing momentum.
The long-term trend suggests the brewing move will take us to higher prices, yet longs need to step in.
Shorts are exhausted and extreme fear spreads through the market. This has usually led to bullish moves.
Bitcoin’s structural bottom is in: the price failed to break below the 50 and 200 SMAs which are now solid support levels. Support has held 5 tests.
Long-term trend reinforces the view of a hard bottom. Notice how the 50 and 200 SMA crossover has led to aggressive moves. The 50 SMA crossed over the 200 SMA marking a golden crossover. Bullish trend confirmed.
Bollinger bands are getting tighter as the price is squeezed between $26.5k and $27.1k. Tight bands lead to strong moves. The longer we trade within the consolidation zone (below the MA), the more shorts get exhausted, and the likelier we go up.
The move will be to the upside, yet RSI is not showing any signs of momentum to get the ball rolling. RSI is currently in no man’s land.
The increasing 1-month 25D Skew suggests that the demand for puts has increased as investors seek coverage to the downside. However, the overall put-to-call distribution indicates that the overall positioning in the options market is skewed to the upside.
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