Despite bitcoin’s steady stand at a $30,000 support level, many investors think that it will soon face a bearish price action for a short time. According to a trader, though it is still above the support level, it is definitely hinting at bearish price action. Experienced traders come to this conclusion after examining previous instances of this famous cryptocurrency which is quite similar to the recent times.
Bitcoin Hinting At Bearish Price Action
Crypto market analysts have shown how the petulant course of bitcoin changes after a remarkable surge in price. Analyzing the candle charts or fractals of its previous course, the experts suggest that if there is an immense selling price, it is more likely to make a negative impact on its price. The impact of the options market is being considered as more significant for now as the open interest is lingering at the price of $3 billion.
It implies that this time there are more options traders and options contracts for the cryptocurrency than before. The “Material Scientist” analysts have found from the fractals that the present data of the options market and the previous cases of price cycles give a clear signal that bitcoin is going to enter the consolidation phase for a short time.
The reason behind the cryptocurrency’s stagnant price at the support level is the pressure of selling price which is incredibly high now. The experts have stated that the pressure of selling price is coming from the miners. CryptoQuant data has also indicated that the position of the miners is really high. While miners are trading on bitcoin and it is the source of pressure in the crypto market, it gives the hint that the price may proceed towards the short-time bear market.
Yet, the support level of $34,000 does not confirm anything but if bitcoin’s price can escalate above that, there is a fair chance of a complete change in the trend.
