Today we’re seeing Bitcoin push up against $12,000 for the first time in a while.
Analysts note a 1.2% increase in Bitcoin value, but mention the existence of large numbers of sell orders at $12,000 that would tend to slow Bitcoin acceleration down.
At Coindesk, Omkar Godbole describes how Bitcoin “broke out of a descending triangle” to pursue greater heights today, and also talks about longer term trends based on the interaction of BTC with equities.
“The likes of the European Central Bank and the Reserve Bank of Australia are expected to ramp up monetary stimulus over the next two months – a long-term positive development for the perceived store of value assets like bitcoin and gold,” Godbole writes.
Another major indicator is open interest in Bitcoin futures.
“Bitcoin traders are opening long positions,” writes Himadri Saha at Cryptopotato.
“Also, a noticeable trend is a rise in aggregated open interest (OI) on different bitcoin futures trading platforms … Open interest in futures trading represents the number of active contracts held by traders and investors. This amounts to open positions that have not been settled or closed out. Along with open interest, aggregated daily volumes for bitcoin futures are also on the rise. Traders seem to be tracking the development of strength in BTC’s on-chain fundamentals, Square’s recent $50 million BTC purchase, and depreciation of strength in the US Dollar, which in turn is leading them to open massive long positions.”
Saha also quotes Willy Woo, an eminent investor mentioned in the piece, going over some strategy for BTC gains.
“As more volume continues to trend off chain into layer-2, NVT drifts higher as investment activity becomes invisible to the chain. I tried many methods, the best was simple long term moving averages to track the new zones of buy and sell. It works if the L2 trend is gradual,” Woo said, as quoted. “In early and mid phases of a bull market, NVT signals very strong investor activity (low NVT) as price continues to climb. You keep buying, as it’s this activity that is driving up price. It starts to weaken (high NVT) as we approach the top of the bull market.”
Keep all of this in mind as you cast a weather eye on BTC price changes.
