The world’s first cryptocurrency, Bitcoin has been doing well for itself considering the previous year. The currency has picked itself up above the $4,000 line and has been holding it steadily. The market cap of Bitcoin is $71 billion with 24-hour trading volume at $5.08 billion.
The one-hour chart of Bitcoin shows prices in an uptrend bullish movement which extends from $3,238 to $3,891. The downtrend, however, extends from $4,205 to $4,062. The prices are holding above the support at $3,578, while the resistance band range from $3919 to $3944 has been successfully breached and holding. The next resistance band range is from $4203 to $4239.
The Parabolic SAR markers are formed below the price candles which indicates a bullish trend for Bitcoin.
The MACD indicator is showing a bullish crossover as the MACD line has crossed above the signal line. The MACD histogram is also started sprouting green.
The Awesome Oscillator shows a bullish crossover that is still underway as the green bars have crossed over to the top of the zero-line.
The uptrend for Bitcoin in the longer time-frame cannot be expected to be formed yet. The downtrend, however, can be seen hanging at $9800 to $4035. The prices are supported at $3183, with resistance lines present at $7359, $8385.
The Aroon indicator shows a sharp rise in uptrend i.e., the green Aroon-line to power as the downtrend seeps down to the zero mark.
The CMF is riding the wave above the zero-line which indicates that the money is flowing into the market for Bitcoin and buyers are controlling the market.
The Relative Strength Index shows a similar scenario where the buyers are controlling the Bitcoin markets as the RSI line is high and near the 55-line.
The one-hour chart for Bitcoin is showing a bullish scenario which is indicated confidently by SAR, MACD and the AO indicators. The one-day chart shows a similar bullish scenario as the one-hour chart which is indicated by the Aroon, CMF and the RSI indicators.
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Wall Street is on the losing side of Bitcoin’s impressive price rally
Wall Street, complete in their tailored suits, suede shoes, and leather briefcases, have once again placed their bets against Bitcoin.
Despite the fact that the collective cryptocurrency market broke the $350 billion mark, with Bitcoin alone accounting for 62 percent of the same and trading at $2,000 over its price at the beginning of the week, hedge funds were not impressed.
The Wall Street Journal citing data from the Commodity Futures Trading Commission reported that crypto-vested managers were holding 14 percent short positions more than long ones on the now, primary avenue for BTC Futures contracts, the Chicago Mercantile Exchange [CME].
A key point to remember here is that CME contracts are cash-settled and hence, no Bitcoins are actually being transferred, with the traders simply placing bets on the cash-equivalent price of Bitcoin.
Well-suited hedge fund owners however weren’t alone, with other stakeholders excluding the small scale crypto-investors holding a 3x on short positions, indicating a further pessimistic sentiment.
Smaller investors were however, long on the BTC market, with the CFTC report stating that investors holding 25 BTC or less were holding four times the long positions as their more exuberant counterparts. It should be noted that the CFTC report was prepared as the price of Bitcoin was still in the $9,000 range, prior to the five-figure surge.
BitMEX, a popular cryptocurrency exchange offering derivatives trading services, saw over $64.38 million in shorts liquidated when Bitcoin broke $10,000. The same was replicated when the price shot past $12,000.
Short positions indicate not just a sheepish position, but rather an investors’ contractual affirmation that the price of an asset will more likely fall than rise. Long positions on the other hand, indicate a pessimistic point of view. Hence, based on Wall Street’s trading activity, institutions are not buoyant about the cryptocurrency market.
In what could be a reverse-catalyst for the digital assets industry, Bitcoin decided to use this negativity as fuel to breach $11,000 earlier this week. Not done with the Wall Street bears just yet, BTC pumped yet again on June 26, with the price breaking the $12,000 ceiling with a further climb to $13,000 looking likely.
Who said Coin Street doesn’t go past the Wall Street express lane?
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