Blockonomist
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Blockonomist

Bitcoin tanks 8% forms a hanging man pattern on daily chart

It’s been a dream run for bitcoin over the past couple of months. The last 12 weeks have been controlled widely by the bulls. Now is it time for bulls to hand over the reign to the bears ?

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It’s been a dream run for bitcoin over the past couple of months. The last 12 weeks have been controlled widely by the bulls. Now is it time for bulls to hand over the reign to the bears ?

Bitcoin bulls are ruthless, but the bears are even worse. It’s evident that from all bull runs either in cryptocurrency or forex or equity markets; there should be ups and downs. But Bitcoin broke all these laws in the past 100 days.

Finally, some increased selling pressure on the daily candlestick chart indicates that the bulls are losing grip over the market. There has been heavy selling pressure for the past 3 -4 days, but the bulls managed to keep the prices higher.

Binance

The average volumes of BTCDOWN (a leveraged token) issued on Binance has risen by 120x times in the past week, suggesting that the underlying perpetual contracts shorting the markets are being bought heavily. The leveraged tokens are already trading at a 21% intraday high compared to the 10% low of bitcoin.

Also, according to the futures data from bybt.com it is suggested that there is a sharp rise in the number of short positions in the open market over the past 24 hours, suggesting that most of the traders are now shorting the asset.

Bybt.com

However we expect a sharp correction in the price of Bitcoin. But for longer term investors there is nothing to panic as the outlook of the asset and global adoption looks like a key strategy. But people can sell off some of their holdings to accumulate more at lower level in upcoming days. The markets will also react to the new presidential policies when president Mr.Biden takes office by Jan 20, 2021. So now it’s a time for traders to wait on the sidelines and watch the game until good lower levels for entering.

Disclaimer : The views expressed are the personal views of the author. It is not investment advice, or we don’t promote anyone to deal with digital assets or securities of any kind. Digital currency investments are subjected to market risks, and it takes high knowledge to become an efficient trader

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