Bitcoin was worth $ 10,463 on BitMEX, just below its previous peak in June. However, there are two indicators that indicate a weakening of BTC: TD9 and currency flows.
TD9 is a trend reversal indicator and is part of the TD sequence system. This usually indicates if the height or correction is excessive.
Similarly, exchange currents, especially between whales, indicate that the continuous march may be crowded.
Will Bitcoin continue to grow?
The TD9 sell signal is triggered mostly when the price of Bitcoin rises for nine days in a row without a significant fall. If nine lights are left over the previous four lights, the TD9 lights up.
Since July 19, Bitcoin has grown from $ 9,219 to $ 10,463. The four lights before the last nine bars closed at $ 9,150, which is TD9.
The TD9 itself can be unreliable. Does not take into account basic assets or techniques. But when BTC convenes for nine days in a row and coincides with other factors, it may indicate that it is declining.
Apart from TD9, analysts study exchange flows from BTC. According to CryptoQuant CEO Ki Young-Ju, the stock market is flocking to Bitcoin's latest rally. He suggested that some whales may be on guard. He said:
“The BTC price has gone up very quickly. Other whales seem to believe that too. ”
Permanent futures financing rates have also increased on major exchanges such as BitMEX and Binance Futures.
Permanent futures do not have an expiration date like regular futures. As such, stock exchanges use a mechanism called financing to motivate users to invest in most of the market.
For example, if the Bitcoin futures market accounts for over 60% of purchases, the financing rate will increase and motivate short shareholders.
Financing rates for BitMEX and Binance Futures are currently 0.072% and 0.054%, respectively. Typically, the constant financing rate for a BTC contract is around 0.01%. This indicates that large parts of the market are hungry, which can make BTC vulnerable to prolonged pressure.
Meanwhile, some traders and technical analysts believe that Bitcoin can continue to rally without a major setback.
Zoran Cole, a cryptocurrency trader, said he expects Bitcoin to settle in the support range of $ 10,000 to $ 10,100 before moving higher. Depending on the structure of the market, the trader indicated that BTC could rise to $ 11,500. He wrote:
“We look forward to trying / testing the DBS area again across a wider range. Lower version of weekly opening / 9900. Exercise 11.5-11.6 weekly from COMO. ”
Raul Pal, CEO of Real Vision Group, said that the real rally for bitcoin begins when BTC exceeds $ 10,500. Pal said that if the fix was unclear before it hit a critical resistance level. But he indicated that he expects progress to continue. He said:
“The real bitcoin game starts at over $ 10,500. It may be fixed right away or it may not, but I'm welcome. ”
Simon Peters, Digital Assets Analyst at eToro, a global investment platform, shared his comments:
“Bitcoin network performance looks good too. Glassnode Reserve Risk Meter … currently shows an attractive level of risk reward, which indicates a high degree of self-confidence and a low price. ”
While many basic indicators point to a small pullback in the short term, some traders believe that BTC's momentum is very strong for deep correction.