Bitcoin (BTC) requires a slightly bearish reassessment of price action as old support levels retreat overnight.
1 hour BTC/USD light chart (bit print). Source: TradingView
Analysts sounded the alarm about open interest
Data from Cointelegraph Markets Pro and TradingView showed a low of $55,640 on Bitstamp on November 19.
Using its lowest levels in more than a month, Bitcoin hasn’t been able to bounce back significantly since then – and now, price predictions are starting to change along with that.
In his latest YouTube update, Philbfilb, an analyst at trading platform Decentrader, warned that the 50-day and 100-day moving averages (DMA) could be anything to help bulls.
Then the BTC/USD pair failed, leaving only the 100DMA at just over $53,000.
“I’d definitely go over $53,000,” he told viewers, saying the odds of winning the Defense 100DMA award were “good enough.”
This level coincides with the $1 trillion market valuation of bitcoin, which was previously considered stable.
Meanwhile, the problems for Philbfilb and others are that open interest rates on bitcoin derivatives continue to rise, despite prices falling.
He suspects that the reason for this is that it takes a long time for traders and the result will either be a clean wipe by rolling back or “sinking” their positions.
Bitcoin futures rate chart. Source: Coinglass
Funding rates also remained high in some of the major stock exchanges, indicating expectations of a return to price hikes.
Bitcoin finance price chart. Source: Coinglass
Whales (continued) buy dip
In other countries, some great breeders put their money where they have nothing to say.
Related: Bitcoin’s drop to $57K is an ‘attractive entry’ for traders, traders say.
According to blockchain data, the third largest BTC address has yet to be bought this week. After the balance increased by 207 BTC to $62,000, larger savings followed in the form of purchases of 1,647 BTC, 700 BTC and 484 BTC.
Cointelegraph also reports that those who have made a purchase in the past six to twelve months are still determined not to sell their coins.
Even at all-time highs, sales remained low, with one year accounting for the largest share of bitcoin’s supply today.