Key Indicator Says Bitcoin’s Momentum Is Weakening: Where Will BTC Head?

Bitcoin has been in the $ 9,000 range for two months and trades between $ 8,500 and $ 10,000 for weeks.

While the cryptocurrency has repeatedly maintained the $ 8,500 support level, a key indicator shows that the upward momentum is waning.

Related topics: Crypto Tidbits: BTC at $ 9,000, grayscale Ethereum trust, cryptocurrency, and PayPal

Bitcoin has a "debilitating" bullish momentum: analyst

According to Josh Olszewicz, an analyst at Brave New CoinThe Ichimoku cloud indicator shows that Bitcoin has “weaker upward momentum” due to consolidation:

“The cloud is still showing weaker upward momentum. If you are bearish, you want an e2e through 7.1. If you are bullish, you want a TK cross via cloud with a target of $ 13,000. "

Olszewicz added that he believes BTC is currently in an "uncomfortable place" that prohibits him from "taking both positions with conviction".

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One-day BTC price chart with Ichimoku Cloud. Chart from TradingView.com; chart made by Josh Olszewicz (@CarpeNoctum on Twitter).

Two factors could disrupt the Bitcoin Bull case

Olszewicz states that Bitcoin is trapped in no man's land, according to its technical analysis. Instead, the basics can tell you which direction the cryptocurrency will go next.

Although Bitcoin investors have increased “HODLing”, three factors threaten to lower the BTC:

  • Sold by miners: On-chain analyst Cole Garner reported last week that miners withdrew a large amount of Bitcoin for the exchange. This means that miners want to liquidate part of their stocks as quickly as possible due to possible disadvantages.
  • Sale by PlusToken: Spencer Noon reported that more than $ 450 million of Ethereum, EOS, Bitcoin, and XRP were removed from PlusToken-owned addresses. Other analysts have reported that some of the funds are slowly flowing into exchanges, presumably to be liquidated.
  • A falling S&P 500: Finally, a retracement in the S&P 500 could lead to a retracement of the Bitcoin price. This is due to a correlation between asset classes observed by JPMorgan and Goldman Sachs analysts. Guggenheim Investments global CIO, Scott Minerd, and Jeremy Grantham are among the analysts who expect the S&P 500 to decline sharply.
Related Reading: Uber & Robinhood Angel Investor: 99% of crypto projects are rubbish

CME traders rely on downside

It is important that institutional investors who trade in the CME Bitcoin futures expect a downward movement.

As reported by NewsBTC, CME futures data show that institutions have accumulated a net short position. A trader shared the picture below, which shows that accounts with the "Institutional Traders" tag cumulatively shorted 2,038 of the CME's BTC futures contracts.

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BTC price chart with CME's Commitment of Traders report data. Chart from TradingView.com; made by Byzantine General (@Byzgeneral on Twitter).
Featured Image from Shutterstock
Price tags: xbtusd, btcusdt, btcusd
Key Indicator Says BTC's Momentum Is Weakening: Where Will BTC Head?





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