- SHIB had a bullish structure on the one-day chart.
- Despite this flip, sentiment remained bearish in the short term.
Shiba Inu [SHIB] saw a deep retracement on the 3rd of January after Bitcoin [BTC] faced strong selling pressure. The price appeared ready for a downtrend but broke the bearish market structure a week later.
A week ago, a whale withdrew $10.27 million worth of SHIB from centralized exchanges. This led to speculation that prices could be poised to rise, and they did rally near 10% a few days later. This shifted the market structure bullish once again.
Integrating the structure and the Fib levels
In late December, the bullish order block at $0.00000916 was seen as a strong demand zone. Its confluence with the 50% Fibonacci retracement level was a bonus. Yet, the selling pressure ramped up significantly in January.
Source: SHIB/USDT on TradingView
The 78.6% level at $0.00000827 was tested and saw a significant bounce. On the 7th of January, SHIB set another bearish candle. This was followed by a structure break a week later, marking it as a bullish order block (cyan).
At press time, SHIB was trading just above this zone. Its OBV saw an uptick in January, but the momentum remained favorable to the bears. The RSI struggled to climb past neutral 50.
The Open Interest was bearishly poised as well
Source: Coinalyze
To gauge the short-term market sentiment, AMBCrypto analyzed the Open Interest trend over the past two weeks. As expected, the OI fell dramatically on the 3rd as prices crashed. Since then, the OI has been unable to recover.
Realistic or not, here’s SHIB’s market cap in BTC’s terms
Each bounce in prices, such as the one from the 8th to the 11th of January, was not accompanied by a rise in OI. This indicated a lack of conviction in the Futures market.
In the past three days, the OI declined alongside the price, to show bearish sentiment in the short-term.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
