Bitcoin Futures (BTC1) – Long-term bearish bias is still constant, even though downside forces are currently lackingPosted on Tuesday, January 3 2023 at 8:17 pm GMT+0000
Bitcoin Futures (BTC1) have been edging sideways over the last few weeks, painting some tiny candlesticks just beneath of the Tenkan-sen line, which managed to curb the late 2022 recovery attempt around the summer bottom of 18,500. The long-term bearish bias is still constant, even though downside forces are currently lacking, and the price action is taking place way below the red Ichimoku cloud.
Nonetheless, the crypto leader kicked off 2023 with an upside gap of 0.93%, liquidating $2.64 million in short positions, representing 58.62% of the total liquidations for the day.
The Ichimoku lines flattened lately, reflecting the recent pause in the downward driving forces, and the oscillators are conveying that the directional impetus vanished. Both the momentum indicator and the ROC are following a horizontal path just beneath their zero mark. In more discouraging signals, the stochastic oscillator just posted a negative crossover in the bearish territory, signifying that downward pressures have not yet abated.
Hence, as bears remain the long-term drivers for the crypto leader, they could re-emerge at any time and squeeze the coin back to the early November lows and the nearby 161.8% Fibonacci extension level of the last up-leg at 14,300. Should negative pressures intensify further, the 10,000 tough psychological level may come into play, before sellers turn their focus towards the 261.8% Fibonacci level of 7,500.
Otherwise, steering higher involves congested regions of resistance, starting from the 18,000 – 18,500 linking the Tenkan-sen line and the late June bottom. Moving past these obstacles, the Kijun-sen line seen around 20,000 may curb additional gains from unfolding towards the mid-August peak of 25,300. Successfully surpassing the latter, the resistance border of 28,800 – 30,200, which encompasses the May and June 2021 bottoms, could come under fire.
To conclude, Bitcoin Futures’ negative mode persists despite the recent pause in the sell-off, and sellers are not easily expected to lose their interest in the market. That said, a jump above 18,500 could feed optimism for some meaningful upside correction.