The price of Bitcoin made another pump to a new yearly high today. We can see that it stopped out just shy of the $9k mark but there are some exchanges on which it might have hit that $9,000 level which is where a lot of sell orders were triggered and as we have seen now BTC/USD has retraced very aggressively. The same happened in the case of ETH/USD as it declined back below the 200-day exponential moving average. We have yet to see Bitcoin test its 200-day moving average but it is now dangerously close to breaking below the rising wedge. 

The recent move in BTC/USD has a lot to do with what happened in traditional markets. We can see in the case of WTI Crude Oil (US Oil) that a major move pushed the price off the 200-day moving average and it shot up for the day but soon ran into strong resistance at the 50 day-moving average. At this point, it has retraced heavily same as Bitcoin which is again a testament to the strong correlation between the two. On the EUR/USD front, we now have a clear break below the 200-day moving average although the trend line support is still intact. In short, most major markets have now come to a decision point and we will soon see Bitcoin take a definitive direction as well. 

Crypto bulls are more optimistic than ever. We can see on the daily chart for ETHUSDLongs/ETHUSDShorts that the ratio has now reached a new all-time high. This should be a cause for concern for most traders that are blindly onboard the pre-halving FOMO train. Just in the past six hours, more than 7 million longs in Bitcoin were liquidated which tells us that many retail traders have actually been buying as the price of Bitcoin was trading close to $9,000. This kind of bullish euphoria is unprecedented and there is no way it is going to end well for the majority of retail traders in this market. 

Author: Jefe Caan

Categories: Bitcoin