Bitcoin has been in a small bull run for the past week and it’s now looking at some healthy consolidation on the daily chart. The digital asset was able to break above both daily EMAs and it is now finding some support at the 12-period EMA.
The 4-hour chart is looking to set a higher low and then seek continuation although the bulls have lost both EMAs. The hourly chart could be forming a double bottom as the RSI is getting overheated.
The weekly time frame is still in favor of the bears even after the recent bull move. The last week formed a bullish reversal hammer candlestick but the bulls need confirmation this week in order for the pattern to be a factor. The 12-period EMA is all the way up at $7,937 and it is the next resistance level here.
Bitcoin’s total market dominance has also increased during the past week. It is now at around 69% getting closer again to the 2019 high of 70%.
BTC Long Positions Still at All-Time Highs
Long positions on Bitfinex are still growing every day while short positions were hammered last week when Bitcoin bounced back up. Although many people are concerned about a long squeeze, which is certainly possible, long positions are showing an increasing interest in buying Bitcoin regardless of the price.
Either way, Bitfinex long or short positions are nowhere close to BitMEX which can heavily affect the market at any time.
BitMEX has also recently posted its 2020 predictions. According to the official tweet, BitMEX thinks Bitcoin will be over $2,000 but under $15,000 and Bitcoin’s dominance will not break above 75%.
Bitcoin Closes CME Futures Gap
Gaps happen when the price of an asset sharply moves into one direction and there is no trading in between. This will result in the chart showing a gap in the price pattern. Bitcoin formed a $200 gap on CME futures in the 3h-chart but has been able to close it just a few hours ago.
This could indicate that a temporary bottom is set which would allow Bitcoin to eye up $8,000. There is really only 1 important resistance area that Bitcoin needs to get through, the $7,850 area before $8,000.