Bitcoin (BTC) consolidated between the $97,000 and $99,000 levels recently, but it proved unable to rise above the psychological resistance level of $100,000. Overnight, Bitcoin fell from $98,000 to below $93,000. Three indicators now suggest that further decline is possible, to levels below $90,000.
Investors are buying more BTC short options
Bitcoin is down 5 percent from its recent record high. This has caused more and more traders to hedge their risks by taking short positions. Data from CoinGlass show that 51.6 percent of options traders opt for short options, which reflects bearish sentiment in the short term.
This bearish sentiment shows that investors are increasingly less confident about bitcoin’s near-term rally. As a result, analysts expect that a price correction will have to occur before the bulls buy again in the dip. Typically when the price rises sharply, a correction or consolidation phase is necessary to ensure a sustainable rally, which seems to be the case here.
Coinbase Premium Index is negative
The Coinbase Premium Index, a key indicator that tracks the relationship between the price of bitcoin at Coinbase pro and Binance, has turned negative for a while, according to data from CoinGlass. Coinbase is mainly popular in the US and among institutions, while Binance is popular worldwide. The fact that the ratio has become negative means that American and institutional interest is declining.
American and institutional interest was very high after Donald Trump’s victory in the US presidential elections, but has now reached a low point. This appears to be the result of the recent declines. Although the index has been restored recently, it has not yet returned to its original glory.
RSI divergence on the BTC chart
Bitcoin has currently been experiencing Relative Strength Index (RSI) divergence, meaning the price of bitcoin has been moving in the opposite direction to momentum. Last Friday, Bitcoin saw a high, while the RSI did not, indicating that momentum is waning.
However, according to other indicators, the bull run does not seem to be completely over yet. For example, in previous crypto news we announced three reasons why the bull run is not over yet. This shows that it is still possible for bitcoin to bounce back and rise further. However, this may require a price correction first. In any case, we will keep you informed of the most important developments via WhatsApp – follow us like thousands of others.
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(clears throat) Alright, folks, gather ’round, I’ve got some crypto news for you. You know, that thing where rich people throw their cash at imaginary money in the hope of getting richer. (chuckles)
So, Bitcoin’s been trying to break through that elusive $100,000 barrier, but it’s like trying to get a cat to do tricks – it’s just not happening. It reached $98,000 and then promptly fell off a cliff, down to $93,000. Now, I’m no expert, but that sounds like a recipe for disaster… or at least a very interesting rollercoaster ride.
Now, our friends at CoinGlass are telling us that 51.6% of options traders are shorting Bitcoin, which means they’re betting against it. Ah, the age-old strategy: “I’m not sure what’s going to happen, but I’ll just bet against it and hope for the best.” (sarcastic tone) Genius!
And then there’s the Coinbase Premium Index, which is like the “cool kid” indicator. It’s saying that American and institutional interest in Bitcoin is waning. Now, I’m not sure what that means, but I think it’s like when your grandma stops calling you – it’s a sign that something’s wrong. (chuckles)
But wait, there’s more! The Relative Strength Index (RSI) is also giving us some bearish vibes. It’s like when your girlfriend gives you that look that says, “I’m not sure about this relationship anymore.” (mimics a worried face)
However, don’t worry, folks, it’s not all doom and gloom. Some other indicators are saying that the bull run isn’t over yet. It’s like when your mate says, “Don’t worry, I’ve got a plan B!” (smirks) Yeah, because plan B always works out, right?
And, as a special treat, if you’re Dutch, you can get €40 in free Bitcoin from OKX. Because, you know, who doesn’t love free money? (winks) It’s like finding a €20 note on the street, but, you know, digital.
So, there you have it, folks. The world of crypto is like a circus – exciting, unpredictable, and occasionally terrifying. Stay informed, and remember: don’t bet your life savings on Bitcoin… unless you’re feeling lucky. (winks)
(Closing remark in a silly voice) And that’s all, folks!
Here is the rewritten article with added details and improved sentences:
After a brief period of consolidation between $97,000 and $99,000, Bitcoin (BTC) has struggled to break through the critical psychological barrier of $100,000. Unfortunately, the cryptocurrency’s downward trajectory resumed overnight, with prices plummeting from $98,000 to below $93,000.
Investors are Flocking to Short Bitcoin Options
As Bitcoin has slipped 5% from its recent record high, investors are growing increasingly cautious. This has led to a surge in traders hedging their bets by taking short positions. According to data from CoinGlass, a staggering 51.6% of options traders are now opting for short options, reflecting a bearish sentiment in the short term.
This widespread adoption of short options signifies a loss of confidence among investors in Bitcoin’s near-term rally. As a result, analysts expect a price correction to occur before bulls re-enter the market, buying the dip. Typically, after a sharp price increase, a correction or consolidation phase is necessary to ensure a sustainable rally – a trend that appears to be unfolding in the current market.
Coinbase Premium Index Turns Negative
The Coinbase Premium Index, a key indicator tracking the price disparity between Coinbase Pro and Binance, has turned negative for an extended period. Data from CoinGlass reveals that this index has been in the red, indicating a decline in interest from American and institutional investors. Coinbase is predominantly used by US investors and institutions, whereas Binance is more popular worldwide.
Following the US presidential elections, which led to increased American and institutional interest in Bitcoin, the recent price declines have caused interest to wane. Although the index has partially recovered, it has yet to regain its previous levels.
RSI Divergence on the BTC Chart
Bitcoin’s Relative Strength Index (RSI) has been experiencing a divergence, where the cryptocurrency’s price movement is inconsistent with its momentum. On Friday, Bitcoin’s price reached a new high, while the RSI declined, indicating a weakening momentum.
While other indicators suggest that the bull run may not be over yet – as highlighted in our previous crypto news – a price correction may be necessary for Bitcoin to bounce back. We will continue to monitor the market and provide updates via WhatsApp – follow us like thousands of others.
Temporary Offer for Dutch Residents: €40 in Free Bitcoin
To celebrate the historic rise in Bitcoin’s price, OKX, one of the Netherlands’ most popular and affordable exchanges, is giving away €100,000 to Dutch residents. For a limited time, new users can receive between €40 and €270 in Bitcoin. As the second-largest crypto exchange globally and the cheapest in the Netherlands, OKX is an attractive option for those looking to invest in crypto. To claim your free Bitcoin bonus, register for free this week.
