The bears especially do not want to see a Bitcoin (BTC) crossing the 19,500 USD, then the 20,000 USD: the bulls could in this case, control the markets for quite a while. The supports that ensure the continuity of the current bullish rally are weakening. Bitcoin is seeing all the colors.
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Cracks in the supports
Bitcoin dropped to $ 18,559 as of today, December 5, 2020. The price of BTC then climbed back above $ 19,150, swinging back and forth between $ 19,000 and that level. It is trading at $ 19,113 as of this writing.
The strength of the uptrend of Bitcoin declines over time, as its price is unable to break through the resistance zone of $ 19,400 – $ 19,500.
The price of BTC is pulled down by miners who are preparing to sell their Bitcoins. Glassnode tweeted today indicating that the 2-day moving average volume of Bitcoins leaving miners’ wallets exploded by 96.8% in 24 hours.
Glassnode also indicated that the 1-day moving average of the indicator of the Bitcoin liveliness – the Bitcoin liveliness index – reached a 7-month high.
The increase in the value of this indicator means that HODlers are liquidating positions that were previously open for the long term. Bitcoin therefore lose – even temporarily – structural support to ensure its rise.
The yellow metal and the greenback for a Bitcoin in the red.
Gold and the dollar are gaining points, an appreciation that jeopardizes the continuation of the bullish rally of Bitcoin.
The bulls must defend the $ 18,500 to avoid a breakout that could roll over the BTC at the $ 16,000 – $ 16,500 level, as in the Thanksgiving crash of November 26, 2020.
Nothing like the anticipation of a crash to cause one: indicators are currently against Bitcoin, fear could be the additional factor that would cause major supports to break. Grayscale will be there to breathe new life into the bulls? Bitcoin really needs another blow of the pump by institutions in order to sustainably cross the 19,500 USD and put an end to the current situation which is rather favorable to the bears, waiting for the right moment to bleed the markets.
Litecoin, welcome in the Silver Age