Bitcoin (BTC) is demanding a “slightly bearish” rethink on price action as old support levels give way overnight.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Analysts sounds alarm over open intere
Data from Cointelegraph Markets Pro and TradingView showed a low of $55,640 on Bitstamp on Nov. 19.
Capitalizing on its lowest levels in over a month, Bitcoin ( $30,124.00 ) has failed to bounce significantly since — and now price forecasts are beginning to change with it.
In his latest YouTube update, Filbfilb, an analyst at trading platform Decentrader, warned that 50-day and 100-day moving average (DMA) may be all that can aid bulls.
BTC/USD then fell through the first, leaving just the 100DMA at just above $53,000.
“I’m definitely going to go spot long at $53,000 again,” he told viewers, having said that the chances of the 100DMA protecting price were “reasonably good.”
That level coincides with Bitcoin’s $1 trillion market cap valuation, something which was previously held to be permanent.
Causing problems for Filbfilb and others, meanwhile, is the still high open interest on Bitcoin ( $30,124.00 ) derivatives in spite of the price comedown.
This, he suspects, is down to traders taking longs — and the result will be either a clean sweep via a rebound, or a “flushing out” of their positions.
Bitcoin futures open interest chart. Source: Coinglass
Funding rates likewise remained elevated on some major exchanges, indicating expectations of higher prices returning.
Bitcoin funding rates chart. Source: Coinglass
Whales (keep) buying the dip
Elsewhere, some large-volume hodlers are putting their money where their mouth is.
Related: Traders say Bitcoin’s drop to $57K is an ‘attractive entry’ for hodlers
According to blockchain data, the third-largest BTC address has continued to buy this week. After increasing its balance by 207 BTC at $62,000, bigger accumulations followed in the form of 1,647 BTC, 700 BTC and 484 BTC purchases.
As Cointelegraph additionally reported, those who bought in over the past six to twelve-month period remain determined not to sell their coins.
Even at all-time highs, selling remained low, with the one-year hodl accounting for the largest proportion of the current Bitcoin ( $30,124.00 ) supply.