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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Bitcoin moved higher on 29 May and the crypto market did not sustain as sellers took control once more. Many of the altcoins such as Shiba Inu saw selling pressure increase over the past few days.
With Bitcoin rejected at the $27.8k resistance after a brief foray higher, the market remained firmly bearish. Sellers were in the driving seat and traders can be bearishly biased rather than looking for buying opportunities.
Calm before the selling storm?
Source: SHIB/USDT on TradingView
The zones marked in red on the chart represent a 4-hour bearish breaker block. There were two of them of significance that were tested as resistance in the past six weeks. One of them was at the $0.000011 area, and the second, lower one was at the $0.0000098 area.
The latter was ceded to the Shiba Inu bears on 6 May and the $0.0000089 level has been tested multiple times as resistance in the past three weeks.
The moving averages were on the verge of forming a bearish crossover yet again, while the RSI moved beneath the neutral 50 value.
Both indicators showed bearish momentum was imminent. Meanwhile, the OBV continued to trend lower, with a short-term resistance (dashed white) holding strong.
The sellers were in firm control. To the south, a 12-hour bullish order block at $0.0000079 was the next support zone SHIB traders can watch out for.
The sentiment remained bearish and speculators chose to stay on the sidelines
Source: Coinalyze
The short-term Open Interest chart showed a non-trending market since 28 May. The majority of speculators were not eager to jump onto every green candle, something that happens during a strong uptrend.
This was witnessed during the SHIB bounce from 25 May to 28 May. The OI was flat since then, but short-sellers were not yet in control. The downward fluctuations did not see short positions opened in large amounts.
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Along with the price action, the Open Interest chart showed that the small bullish momentum from $0.0000084 to $0.00000885 was nothing more than a minor bounce.
It was likely that Shiba Inu would face further losses in the coming days, especially if Bitcoin prices take a hit.
