Why Should you Buy the Dips?

Crypto Compass 21

Key Takeaways

• Bitcoin starts the week with some swings within the ongoing range, but the price action is getting tighter and tighter, the next move is close.

• Shorts built up positions over the weekend, but failed to break below for now. The $26k buy wall was moved lower.

• Nasdaq climbs higher and the DXY is getting close to resistance. It’s a matter of time before BTC catches up.

• Bitcoin has been trading within the $26 - $30.5k range for 66 days… however, we’re seeing the initial signs of an exhausted and bored market as shorts failed (and continue to do so) to break below or test the $25k hard bottom.

• The difference between the rolling top and bottom is low as the price is in a sideways trend. We believe a big move is approaching, and bulls are looking stronger.

• The week started with some swings: shorts built up positions over the weekend but failed to hit the juicy $25k target. There is no sign of a follow-through in either direction, we expect further chop.

• Notice how open interest was wiped out when the price increased. This is a sign of weak shorts covering their positions as the price retested the $27k level. We need to see a break of the open interest horizontal line for direction.