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Bitcoin has regained good colors despite a fearful market

Bitcoin has recovered from its lows of $33,000. The bottom seems established for the moment, all the more so if we manage to break the 45,000 dollars, an area that risks being defended by the sellers. The more than critical geopolitical situation was conducive to a broader retracement. However, today's news points to green for the coming weeks, if the situation does not deteriorate. We are off to this week's Bitcoin 360°, I will try to be as complete as possible by sharing my feelings on the market with you, good reading!

Bitcoin has regained good colors despite a fearful market

A weekly range

Let's start right away, with the weekly time unit . We note that changes in trend could be anticipated with the taking of liquidity. What is that ? It is quite simply a wick of candle which comes to touch a lower or higher, but which closes inside the range . This reflects a lack of strength from buyers or sellers to push the price further and even absorb their orders to push the market in the opposite direction.

If we apply this observation today, we can see that a first outflow of liquidity has taken place. This is a first sign of a potential bottom in the short or medium term.

In addition to this liquidity intake, we see that bitcoin is still in its range , which it does not leave. As long as the latter holds, deviations from top to bottom are to be expected. A simple strategy can be to buy near the bottom of the range ($35,000) and sell near the top of the range ($65,000). It doesn't require much knowledge and can be quite daunting.

Let's zoom in on the daily to get a better look at the price action . How to indicate the past week, the area is dotted with imbalances , which I have noted in blue. I'm keeping these areas on watch as I think sellers are going to use these areas to get in and potentially try to create downward movement. If we are bullish on the asset, these territories can be interesting, in my opinion, to take its profits even if it means repositioning itself afterwards in the event of a future downward retracement.

I have placed the areas of imbalances in green , as explained above, the price tends to fill these areas before reversing the trend.

On the $44,000, there is an  equal high , so the price will tend to take liquidity above (into the green zone) and then potentially turn around, at least in the short term, due to the accumulation of sellers in this zone.

You know me, I like to take a look at open interest  which is a simple to understand and very effective tool. Personally, it has an essential place in my trading and even more so in my market sentiments. I find it, like any indicator, even more relevant on large time units, such as  daily  or  weekly.

OI  (Open Interest)  refers to the total number of outstanding derivative contracts that have not been settled. For every buyer, there must be a seller. 

Here the price continues to rise although the OI ( Open Interest ) is falling, this underlines a healthy rise, not led by large levers. This is exactly the kind of information we want to have in case of  bottom .

Funding represents the spread between spot and futures . At the moment it is positive. The majority of players are therefore looking long, which was not necessarily the case at the start of this bullish rally.

Finally, I receive many questions asking me on which site I analyze my values. Personally, and for many years, I  have been using TradingView , an intuitive interface with quite a few tools and a large choice of assets. It is clearly the most developed and used interface on the market.