December 5, 2021

Why a trader says Bitcoin is short-term bearish despite holding $30K

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A pseudonymous trader known as “Byzantine General” is short-term bearish as Bitcoin (BTC) continues to test the same $30,000 support area.

Although the price of Bitcoin is staying above a key support level, the trader said the price action is not bullish. He wrote:

“In the midst of all this chaos, here’s a bitcoin chart. Not much to do. It’s bearish no matter how you look at it. But we’re sitting on support, so no swing short opportunity either… It’s just waiting now. > YO needs to hold.”

“Options market is signaling a short-term bearish view”

Analysts see a similar trend from the options market and previous Bitcoin fractals. Fractals are technical candle chart patterns that analysts typically use to compare the current price action of Bitcoin to previous cycles.

According to analysts at the data analytics company Laevitas, the options market signals are short-term bearish view. They said:

“As Bitcoin consolidation continues, put/call ratio on @DeribitExchange is at 2 today. In last 24h, seeing decent buy volume on 26MAR 9000p, 13000p and 14000p. Options market is signaling a short-term bearish view.”