Bitcoin enters $26K ‘bearadise’ as BTC price approaches 2-month lows
Extra information from Coinglass put the long/short ratio at 58.7% long at the time of composing on May 12. BTC long/short ratio chart. Source: CoinglassMagazine: Unstablecoins: Depegging, bank runs and other threats loomThis article does not include financial investment guidance or suggestions. Every investment and trading relocation involves risk, and readers need to conduct their own research when making a decision.
Bitcoin (BTC) neared two-month lows on May 12 amid fears that a “head-and-shoulders” pattern would put bears ahead.BTC/ USD 1-hour candle light chart (Bitstamp). Source: TradingViewAnalysis of BTC price: “Welcome to bearadise” Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching $26,100 on Bitstamp– its least expensive considering that March 17.” Welcome to bearadise,” on-chain monitoring resource Material Indicators summarized.A chart published to Twitter the day before revealed primary buy support now around $25,750, with BTC/USD consuming liquidity greater overnight.BTC/ USD order book data (Binance). Source: Material Indicators/ TwitterOn everyday timeframes, issues among market participants hence focused on whether the set would now stay lower after three local tops.This “head-and-shoulders pattern,” now clearly visible on the chart, would create a negative precedent ought to it confirm. BTC long/short ratio chart.
As Cointelegraph reported, several traders were already looking for a much deeper retracement to $25,000 or lower. #BTC repeating very same path25k$ seems to be the logical level everybody tends to spam the BUY buttonAnticipating pic.twitter.com/QUyYpOFahM— Mikybull Crypto (@MikybullCrypto) May 12, 2023
These consisted of nominally bullish Jelle, who conceded on the day that Bitcoin might make a “last stab” at the $25,000 mark prior to reversing.He noted that relative strength index (RSI) readings were not serving sellers well on low timeframes.” Bitcoin destroyed straight through support, next major zone of interest is around 24-25k,” he tweeted.” BTC/USD annotated 4-hour chart with RSI.
Bitcoin (BTC) neared two-month lows on May 12 amid fears that a “head-and-shoulders” pattern would put bears ahead.BTC/ USD 1-hour candle chart (Bitstamp).” Welcome to bearadise,” on-chain tracking resource Material Indicators summarized.A chart published to Twitter the day prior to revealed primary buy assistance now around $25,750, with BTC/USD consuming liquidity greater overnight.BTC/ USD order book data (Binance). Source: Material Indicators/ TwitterOn everyday timeframes, issues amongst market individuals therefore focused on whether the set would now remain lower after 3 local tops.This “head-and-shoulders pattern,” now clearly noticeable on the chart, would create an unfavorable precedent needs to it validate.
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Other Questions People Ask
What does it mean that Bitcoin enters $26K ‘bearadise’ as BTC price approaches 2-month lows?
The term ‘bearadise’ refers to a market condition where Bitcoin's price is experiencing significant downward pressure, leading to fears of further declines. As Bitcoin approaches two-month lows, traders are concerned about a potential "head-and-shoulders" pattern that could indicate a bearish trend. This situation suggests that market participants should be cautious and consider the implications of such patterns on future price movements.
How does the long/short ratio affect Bitcoin entering $26K ‘bearadise’?
The long/short ratio provides insight into market sentiment, with a current ratio of 58.7% long indicating that more traders are betting on price increases despite the bearish conditions. This imbalance can lead to increased volatility, as a sudden shift in sentiment could trigger liquidations of long positions. Understanding this ratio is crucial for traders navigating Bitcoin's current ‘bearadise’ phase.
What support levels should traders watch as Bitcoin nears $26K ‘bearadise’?
Traders should closely monitor the primary buy support level around $25,750, as indicated by recent market data. If Bitcoin fails to hold above this level, it could lead to further declines towards the $25,000 mark or lower. Keeping an eye on these support levels can help traders make informed decisions during this bearish phase.
What are the implications of the 'head-and-shoulders' pattern for Bitcoin in its current state?
The 'head-and-shoulders' pattern is a bearish reversal signal that suggests a potential decline in Bitcoin's price if confirmed. As this pattern becomes more visible on the charts, traders may anticipate further downward movement, which could reinforce the ‘bearadise’ sentiment. Recognizing this pattern is essential for traders looking to mitigate risks in their positions.
How should investors approach trading Bitcoin during this ‘bearadise’ period?
Investors should approach trading Bitcoin with caution during this ‘bearadise’ period, focusing on risk management strategies. Conducting thorough research and monitoring key support levels can help inform trading decisions. Additionally, being aware of market sentiment and patterns like the 'head-and-shoulders' can provide valuable insights into potential price movements.